providing new evidence helpful for discriminating between different types of externalities. We investigate four-digit level … most important factor in the transmission of externalities. This suggests that transactions externalities accruing … primarily to the seller, and/or activity-driven demand externalities are significant for explaining the short-run behavior of …

In this paper we show that consumption externalities reduce the degree of increasing returns needed to generate … indeterminacy in a two-sector optimal growth model. In equilibrium, consumption externalities operate as if the utility function is … (close to) linear. If these externalities are strong, the minimum necessary increasing returns approach zero. Therefore, this …