This paper investigates whether the external consumption habit can be a source of indeterminacy in a one-sector growth … substitution, we find that the model exhibits indeterminacy if the coefficient of the habit formation is sufficiently large that … allows for a substantial impact of current consumption on the habit. Indeterminacy arises even though the elasticity of the …

the technologies, we derive necessary and sufficient conditions for local indeterminacy. We show that, when the investment … that the cost of forgoing consumption is not too high. When the consumption good sector is capital intensive, indeterminacy …