Guo, Jang-Ting; Harrison, Sharon G. - In: Journal of Economic Theory 145 (2010) 1, pp. 287-300
We examine a two-sector real business cycle (RBC) model with sector-specific externalities in which household utility exhibits no income effect on the demand for leisure. Unlike in the one-sector counterpart, indeterminacy can result with sufficiently high returns-to-scale in the investment...