Indeterminacy and cycles in two-sector discrete-time model

B-Tier
Journal: Economic Theory
Year: 2002
Volume: 20
Issue: 2
Pages: 217-235

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

We consider a discrete-time two-sector Cobb-Douglas economy with positive sector specific external effects. We show that indeterminacy of steady states and cycles can easily arise with constant or decreasing social returns to scale, and very small market imperfections. This is in sharp contrast with most of the contributions in the literature in which increasing social returns are required to generate indeterminacy.

Technical Details

RePEc Handle
repec:spr:joecth:v:20:y:2002:i:2:p:217-235
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24