Webbetween private and social returns is necessary for indeterminacy, this in no way requires decreasing marginal costs or increasing marginal returns in production. For reasons also given at the end of Sect.13.2, indeterminacy can arise in a constant returns two-sector economy only if the utility of consumption is close to linear. Web1 feb. 2014 · Specifically, the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy, and when the degree of …
Indeterminacy and Sunspots with Constant Returns SpringerLink
Web22 aug. 2012 · Finally, our main conclusion shows that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns, but requires … Web22 aug. 2012 · Second, we prove that when labor is infinitely elastic, saddlepoint stability is obtained if the investment good sector has constant social returns, whereas local indeterminacy arises if the investment good sector has increasing social returns and the elasticity of intertemporal substitution in consumption admits intermediate values. sneakerhead background
Indeterminacy and increasing returns — NYU Scholars
Web26 feb. 2024 · This paper systematically examines the interrelations between equilibrium indeterminacy, endogenous entry and exit of intermediate input firms, and increasing … WebTools. In economics, the term sunspots (or sometimes "a sunspot") refers to an extrinsic random variable, that is, a random variable that does not affect economic fundamentals (such as endowments, preferences, or technology ). Sunspots can also refer to the related concept of extrinsic uncertainty, that is, economic uncertainty that does not ... Web26 sep. 2002 · FISCAL POLICY, INCREASING RETURNS, AND ENDOGENOUS FLUCTUATIONS - Volume 6 Issue 5. Due to planned system work, ... A NOTE ON INDETERMINACY AND INVESTMENT ADJUSTMENT COSTS IN AN ENDOGENOUSLY GROWING SMALL OPEN ECONOMY. Macroeconomic Dynamics, Vol. 16, Issue. S3, p. … road to buying a home