This paper examines the rise of indeterminacy when public investment fiscal rules are implemented. The framework … and another by indexing to taxes. For both scenarios we examine the existence of global and local indeterminacy and state …

generate indeterminacy but it is also shown that this can be done without assuming a very elastic supply of labor. …

In endogenous growth theory models exist which are characterized by local and global indeterminacy. These concepts … imply that economies differ with respect to their growth rates on the transition path (local indeterminacy) as well as their … long-run growth rates (global indeterminacy). While the empirical density function of the levels of aggregate GDP has been …

find that active interest rate rules generate equilibrium uniqueness, but passive rules can lead to real indeterminacy …. Simulation shows that even in the presence of investment, passive rules are very likely to render indeterminacy. …

find that active interest rate rules generate equilibrium uniqueness, but passive rules can lead to real indeterminacy …. Simulation shows that even in the presence of investment, passive rules are very likely to render indeterminacy. …

generate indeterminacy but it is also shown that this can be done without assuming a very elastic supply of labor. …

) find that a consumption admiration effect can be a source of local indeterminacy, whereby average consumption flows exert a … longer a source of equilibrium indeterminacy unless the speed of consumption habit formation is infinite. …