leisure. Unlike in the one-sector counterpart, we show that equilibrium indeterminacy can result with sufficiently high … 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. …

, we also examine a model with indeterminacy and self-fulfilling expectations (SFE), and one with credit shocks. Historical …

It has been shown that an otherwise standard one-sector real business cycle model may exhibit indeterminacy and …-generating government purchases in either of these specifications. It turns out that the previous indeterminacy results remain unchanged by …