leisure. Unlike in the one-sector counterpart, we show that equilibrium indeterminacy can result with sufficiently high … the threshold level of returns-to-scale needed for generating indeterminacy and sunspots. This finding turns out to be … exactly the opposite of that in all existing RBC-based indeterminacy studies. …

This paper quantitatively examines the empirical plausibility of equilibrium indeterminacy and sunspot-driven cyclical …