Wang, Pengfei; Wen, Yi - In: Journal of Economic Theory 143 (2008) 1, pp. 519-540
This paper shows imperfect competition can lead to indeterminacy in aggregate output in a standard DSGE model with imperfect competition. Indeterminacy arises in the model from the composition of aggregate output. In sharp contrast to the indeterminacy literature pioneered by Benhabib and Farmer...