Indeterminacy and Uniqueness in a Growth Model with Non-separable Utility
نویسنده
چکیده
In this paper, we study the equilibrium dynamics of an endogenous growth model with endogenous fertility choice. We show that the model may have a unique equilibrium which is globally determinate. Mathematics Subject Classification: 49Q99, 91B62
منابع مشابه
Income effects and indeterminacy in a calibrated one-sector growth model
This paper analyzes how the indeterminacy of competitive equilibrium in one-sector growth models depends on the magnitude of the householdsincome e¤ect on the demand for leisure. The paper rst establishes that the presence of income e¤ect is necessary for the existence of an indeterminate equilibrium. Because I am further interested in quantitatively characterizing regions of uniqueness and r...
متن کاملIndeterminacy with Non-separable Utility
J. Benhabib and R. E. A. Farmer (1994, J. Econ. Theory 63, 19 41) showed that a single sector growth model in the presence of increasing returns-to-scale may display an indeterminate equilibrium if the demand and supply curves cross with the ``wrong slopes.'' We generalize their result to a model with preferences that are nonseparable in consumption and leisure. We provide a simple analog of th...
متن کاملIndeterminacy and E-stability in Real Business Cycle Models with Factor-Generated Externalities
This paper provides a solution to the stability puzzle (Evans and McGough [11]): indeterminacy almost always implies expectational unstability in reduced-form real business cycle (RBC) models. After relaxing the restrictions on the magnitude of capital externalities with CobbDouglas technology, we nd regions for joint indeterminacy and E-stability in the following cases that i) the felicity fun...
متن کاملMultiple Equilibria in Two-sector Monetary Economies : an Interplay between Preferences and the Timing for Money
In this paper, we study the occurrence of local indeterminacy in two-sector monetary economies. In order to capture the credit market imperfections and the liquidity services of money, we consider a general MIUF model with two alternative timings in monetary payments: the Cash-In-Advance timing, in which the cash available to buy goods is money in the consumers’ hands after they leave the bond ...
متن کاملIndeterminacy with Progressive Taxation and Sector-Specific Externalities
This paper quantitatively examines the empirical plausibility of equilibrium indeterminacy and sunspot-driven cyclical fluctuations in a real business cycle model with two distinct production sectors that yield consumption and investment goods, together with separable or non-separable preferences. When calibrated to match the observed progressivity of the U.S. federal individual income tax sche...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2015