-cycle fluctuations. Externalities can lead to indeterminacy, allowing self-fulfilling expectations to determine the equilibrium. This … paper argues that the importance of indeterminacy might be overstated by the literature, as it does not recognize that …. This implies that the aggregate characteristics may not be informative even when there is determinacy. Thus indeterminacy …

. We find that indeterminacy emerges for empirically plausible values of the parameters, compatible with a downward …-sloping marginal productivity of labour curve. Moreover, we show that indeterminacy and Hopf bifurcations are possible with an …

We propose a method for solving and estimating linear rational expectations models that exhibit indeterminacy and we …

generation EBC1 models to second generation EBC2 models. I argue that EBC1 models, which display dynamic indeterminacy, are part … steady-state indeterminacy, are a more radical departure from the classical Real Business Cycle model; they represent a …

) 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. …

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