presence of indeterminacy, sunspot equilibria can exist. I study the stability of the trap, subject to continuous-time sunspot …

presence of indeterminacy, sunspot equilibria can exist. I study the stability of the trap, subject to continuous-time sunspot …

The usual conclusion in the literature is that sunspots reduce welfare because of the agents' risk aversion. However …, if sunspots can lead to escape from an inferior steady state (poverty trap), this conclusion does not necessarily hold …

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

We analyze local indeterminacy and sunspot-driven fluctuations in the standard two-sector model with additively … corresponding parameter space. We also show that local indeterminacy can be obtained under any labor supply elasticity or under an … arbitrarily low elasticity of intertemporal substitution in consumption. On the empirical side, we find that indeterminacy and …

indeterminacy occurs through flip and Hopf bifurcations for a large set of values of the elasticity of intertemporal substitution in … indeterminacy occurs through flip and Hopf bifurcations for any value of the elasticity of the labor supply, and can even be …

, taxation policy can generate indeterminacy under plausible parameterizations. The key for this result is that the accumulation …

that indeterminacy of steady states and cycles can easily arise with constant or decreasing social returns to scale, and … increasing social returns are required to generate indeterminacy. …

allows indeterminacy, we demonstrate the possibility of Hopf bifurcation using both analytical and numerical approaches. The …