known to exist in part of the indeterminacy region. The new type of equilibria, which we call ergodic k-SSEs, are driven by …

. We show that in order to get indeterminacy, the presence of both aggregate and sector-specific external effects is needed … consumption. We perform a sensitivity analysis and show that indeterminacy emerges for parameter values in line with those used in …

, homothetic preferences and productive external effects [Lloyd-Braga et al., 2007. Indeterminacy in dynamic models: When Diamond … period consumption over the wage income, local indeterminacy can easily occur for mild externalities if constant government … mild externalities, small government expenditures are helpful to local indeterminacy, while large government expenditures …

and generalized no-income-effect preferences à la Greenwood, Hercovitz and Huffman [13]. We provide a detailed theoretical … function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …