Herrendorf, Berthold; Valentinyi, Ákos - 2000
indeterminate and stable sunspots are possible. We find that capital adjustment costs of any size preclude stable sunspots for every … empirically plausible specification of the model parameters. More specifically, we show that when capital adjustment costs of any … the standard result that when we abstract from capital adjustment costs, stable sunspots occur in the two-sector model for …