Chen, Been-Lon; Hsu, Yu-Shan; Mino, Kazuo - In: Journal of Economics 109 (2013) 3, pp. 245-269
This paper investigates whether the external consumption habit can be a source of indeterminacy in a one-sector growth model when the labor supply is elastic. When there is a proper habit effect with a positive intertemporal elasticity of substitution, we find that the model exhibits...