In this paper we consider a Ramsey one-sector model with non-separable homothetic preferences, endogenous labour and … productive external effects arising from average capital and labour. We show that indeterminacy cannot arise when there are only … capital externalities but that it does when there are only labour external effects. We prove that sunspot fluctuations are …

the wage income, local indeterminacy of equilibria cannot occur with capital externalities alone but that it can occur … periods of life, homothetic preferences and productive external effects coming from the average capital and labour. We show … when there are only, however small, labour externalities. More precisely, under gross substitutability, the existence of …

-constrained monetary economy with heterogenous agents and increasing returns to scale due to labour and capital productive externalities …. We find that indeterminacy emerges for empirically plausible values of the parameters, compatible with a downward …-sloping marginal productivity of labour curve. Moreover, we show that indeterminacy and Hopf bifurcations are possible with an …

fiscal policy rule, steady state indeterminacy may arise as a result of endogenous labor income tax rates. In this paper, it … ranges of indeterminacy shrink, thus reducing the possibility of aggregate instability. From a policy perspective, the …

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. …