Galí, Jordi - C.E.P.R. Discussion Papers - 1993
firm depends on the aggregate savings rate. The latter feature results from a wedge between the elasticity of substitution … elasticity is constant or inversely related to the savings rate the equilibrium dynamics are shown to be qualitatively identical … saddle-point stable. In contrast, when the demand elasticity is positively related to the savings rate, multiple stationary …