Guo, Jang-Ting; Chin, Chi-Ting; Lai, Ching-Chong - Department of Economics, University of California-Riverside - 2009
This paper analytically examines the interrelations between macroeconomic (in)stability and investment adjustment costs in a one-sector endogenously growing small-open-economy representative agent model. We show that under costly capital accumulation, the economy exhibits indeterminacy and...