Indeterminacy in the small open economy Ramsey growth model

Mark Weder

No 1999,30, SFB 373 Discussion Papers from Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Abstract: This paper constructs a small open economy version of the two sector Benhabib-Farmer (1996) indeterminacy model. It can be shown that sunspot equilibria arise at significantly lower magnitude of increasing returns to scale than in the original dosed economy model. Furthermore, if a mix of externalities across sectors is admitted, indeterminacy can be obtained even with decreasing aggregate returns to scale.

JEL-codes: E32 F4 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Indeterminacy in a Small Open Economy Ramsey Growth Model (2001)
Working Paper: Indeterminacy in a Small Open Economy Ramsey Growth Model (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb373:199930

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