productive external effects arising from average capital and labour. We show that indeterminacy cannot arise when there are only …

the wage income, local indeterminacy of equilibria cannot occur with capital externalities alone but that it can occur …, local indeterminacy occurs in a Cobb-Douglas economy. Finally, we show that, as a consequence of our restriction on first …

production externalities. It is shown that indeterminacy is considerably easier to obtain under a regime of perfect world capital … shown that the qualitative results on indeterminacy remain basically unaffected by this extension. …

) income and consumption taxation, on the emergence of indeterminacy. We find that what is relevant for indeterminacy is the … and its variability under which indeterminacy occurs. Moreover, in contrast to previous results, we find that consumption … taxes can lead to local indeterminacy when asset markets are segmented. …

continuum of equilibria; adding incomplete markets may lead to real indeterminacy. …

-cycle fluctuations. Externalities can lead to indeterminacy, allowing self-fulfilling expectations to determine the equilibrium. This … paper argues that the importance of indeterminacy might be overstated by the literature, as it does not recognize that …. This implies that the aggregate characteristics may not be informative even when there is determinacy. Thus indeterminacy …