BOUCEKKINE, Raouf; RUIZ-TAMARIT, Ramon - Center for Operations Research and Econometrics (CORE), … - 2004
In this note, we use a technique analogous to Xie's method (1994) to solve analytically the Lucas model with externality in a specific parametric case. In particular, we characterize the shape of imbalance effects in this model. Our results are entirely consistent with the findings of the...