Indeterminacy in a model with aggregate and sector - specific externalities
نویسندگان
چکیده
We present a two sector dynamic general equilibrium model with both sector-specific and aggregate externalities. We find that including the aggregate effects allows for a trade-off between the sizes of the two types of externalities needed for indeterminacy. 2000 Elsevier Science S.A. All rights reserved.
منابع مشابه
Indeterminacy in a Model with Aggregate and Sector-Speci ̄c Externalities
We present a two sector dynamic general equilibrium model with externalities coming from both sector-speci ̄c and aggregate economic activity. We ̄nd that including aggregate e®ects does not reduce the overall level of returns to scale needed for indeterminacy. Instead, it simply allows for a trade-o® between the two types of external e®ects. ¤We would like to thank Jess Benhabib and Jang-Ting G...
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