persistence than standard RBC models and can exhibit indeterminacy of rational expectations paths without increasing returns in …

model may exhibit indeterminacy and sunspot fluctuations when income tax rates are determined by a balanced-budget rule … labour and capital below unity. We show that compared to the Cobb-Douglas case, the likelihood of indeterminacy under a …

parameters of a simple forward-looking monetary rule. We solve the model under indeterminacy via the procedure introduced by … under indeterminacy is a mirror image of what it is under determinacy: both inflation persistence and the volatility of its … reduced-form innovations, for example, are increasing in the coefficient on inflation under indeterminacy, decreasing under …

This paper quantitatively investigates equilibrium indeterminacy due to economies of scale (ES) in financial … calibrated to match US data: (i) indeterminacy arises for small degrees of ES; (ii) sunspot shocks qualitatively resemble …

inclusion of investment has dramatic, but contrasting, effects on the range of values giving rise to indeterminacy. First, it …