We study a two-sector model of economic growth with labor augmenting external effects. Using general specifications of the technologies, we derive necessary and sufficient conditions for local indeterminacy. We show that, when the investment good sector is capital intensive at the private level,...

This paper studies a two-sector endogenous growth model with <p> labour augmenting externalities or Harrod-Neutral technical change. The <p> technologies are general and the preferences are of the CES class. If con- <p> sumers are su±ciently patient, ergodic chaos and geometric sensitivity to <p> initial...</p></p></p></p>