Herrendorf, Berthold; Valentinyi, Akos - Közgazdaság-tudományi Intézet, Közgazdaság- és … - 2002
It is well known that if mild sector–specific externalities are considered, then the steady state of the standard two-sector real business cycle model can become locally indeterminate and endogenous business cycles can arise. We show that this result is not robust to the introduction of...