Occupational Choice and Dynamic Indeterminacy

B-Tier
Journal: Review of Economic Dynamics
Year: 2005
Volume: 8
Issue: 1
Pages: 138-153

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper construct a two-sector model of two-period lived overlapping generations with endogenous occupational choice where ability-heterogeneous agents choose whether to become educated when young. We show that the steady-state equilibrium can be locally indeterminate even under linear preferences and constant-returns Cobb-Douglas production technologies, regardless of the factor-intensity rankings. Thus, endogenous occupational choice can result in dynamic indeterminacy without complicate preferences/technologies and without requiring the consumption-good production $more capital-intensive. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:v:8:y:2005:i:1:p:138-153
Journal Field
Macro
Author Count
3
Added to Database
2026-01-26