show that when labor is inelastic, for any configuration of the returns to scale, local indeterminacy is obtained if there … indeterminacy arises if the investment good sector has increasing social returns, provided the consumption good is labor intensive …, we show that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns …

leisure. Unlike in the one-sector counterpart, we show that equilibrium indeterminacy can result with sufficiently high … the threshold level of returns-to-scale needed for generating indeterminacy and sunspots. This finding turns out to be … exactly the opposite of that in all existing RBC-based indeterminacy studies. …

conditions on technologies leading to the existence of local indeterminacy for any value of the interest rate elasticity of money …