model may exhibit indeterminacy and sunspot fluctuations when income tax rates are determined by a balanced-budget rule … labour and capital below unity. We show that compared to the Cobb-Douglas case, the likelihood of indeterminacy under a …

We establish conditions under which indeterminacy can occur in a small open economy business cycle model with … endogenous labor supply. Indeterminacy requires small externalities in technologies with social constant returns to scale …

parameters of a simple forward-looking monetary rule. We solve the model under indeterminacy via the procedure introduced by … under indeterminacy is a mirror image of what it is under determinacy: both inflation persistence and the volatility of its … reduced-form innovations, for example, are increasing in the coefficient on inflation under indeterminacy, decreasing under …

This paper quantitatively investigates equilibrium indeterminacy due to economies of scale (ES) in financial … calibrated to match US data: (i) indeterminacy arises for small degrees of ES; (ii) sunspot shocks qualitatively resemble …

indeterminacy and to countercyclical behavior of young-age consumption. The policy rule which minimizes inflation volatility can be … money growth targeting. Indeterminacy is more likely under an active forwardlooking rule than under the corresponding …

inclusion of investment has dramatic, but contrasting, effects on the range of values giving rise to indeterminacy. First, it …

. Indeterminacy also emerges in the socially efficient second-best allocation even when the government intends to internalize habit …

model may exhibit indeterminacy and sunspots fluctuations when income tax rates are determined by a balanced-budget rule …