Do adjustment costs able to modify the dynamic of the two sectors model? We examine the impact of adjustment costs in capital on the properties of long-run equilibrium. We propose to analyse how the positive and negative degrees of adjustment costs could interplay with the local indeterminacy...

This paper investigates the impacts of progressive trade openness, technological externalities, and heterogeneity of individuals on the formation of entrepreneurship in a two-country occupation choice model. We show that trade opening gives rise to a non-monotonic process of international...

We propose to study the dynamic impact of adjustment costs in capital on the two sectors model with positive sector specific externalities. We proove that such costs are able to lead to endogenous fluctuations by financial transmission mechanism. Indeed, since adjustments costs are linked to the...