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 …

We show that indeterminacy can easily arise in multi-sector models that have constant variable returns to scale and … indeterminacy, and which have been criticized on the basis of recent empirical estimates indicating that returns to scale are … sunspots, using standard parametrizations to produce a close match to the moments of aggregate consumption, investment, output …