The Paper approaches business cycles in terms of extrinsic uncertainty related, not to dynamic indeterminacy of … static indeterminacy of free entry oligopolistic equilibria within each period. We consider an OLG economy in which firms … dynamic indeterminacy, we can weaken the condition on the degree of increasing returns, which may be arbitrarily small (with a …

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

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. …