Chang, Juin-jen; Huang, Chun-chieh; Hung, Hsiao-wen - In: Review of Economic Dynamics 14 (2011) 2, pp. 384-388
The required degree of increasing returns-to-scale to satisfy the Benhabib-Farmer condition for local indeterminacy is too high to be empirically plausible. In the paper, we develop a natural extension of Benhabib and Farmer's (1994, Journal of Economic Theory) model by introducing aggregation...