technologies for both sectors identical, for expositional simplicity, we show that indeterminacy can easily occur for parameter …

This chapter gives an overview of the recent literature on indeterminacy and sunspots in macroeconomics. It discusses … effects, monopolistic competition, and increasing returns in generating indeterminacy is explored for one-sector and multi …-sector models of real business cycles and of economic growth. Indeterminacy is also studied in monetary models, as well as in models …

postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot … windows and allowing the parameters to fall both in the determinacy and indeterminacy regions. The estimates reveal large … the sample. The results confirm that macroeconomic data in the early windows are better explained by indeterminacy, while …

indeterminate and stable sunspots are possible. We find that capital adjustment costs of any size preclude stable sunspots for every … size are considered, a necessary condition for the existence of stable sunspots is an upward- sloping labor demand curve in … the standard result that when we abstract from capital adjustment costs, stable sunspots occur in the two-sector model for …