presence of indeterminacy, sunspot equilibria can exist. I study the stability of the trap, subject to continuous-time sunspot …

presence of indeterminacy, sunspot equilibria can exist. I study the stability of the trap, subject to continuous-time sunspot …

The usual conclusion in the literature is that sunspots reduce welfare because of the agents' risk aversion. However …, if sunspots can lead to escape from an inferior steady state (poverty trap), this conclusion does not necessarily hold …

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

We analyze local indeterminacy and sunspot-driven fluctuations in the standard two-sector model with additively … corresponding parameter space. We also show that local indeterminacy can be obtained under any labor supply elasticity or under an … arbitrarily low elasticity of intertemporal substitution in consumption. On the empirical side, we find that indeterminacy and …

indeterminacy occurs through flip and Hopf bifurcations for a large set of values of the elasticity of intertemporal substitution in … indeterminacy occurs through flip and Hopf bifurcations for any value of the elasticity of the labor supply, and can even be …

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 …

source of indeterminacy. …

indeterminate. After opening the borders, the rigid wage country may export indeterminacy to the full employment country …, particularly if it is big enough. In contrast, when the full employment country is sufficiently big, local indeterminacy, and … fluctuations (associated with local indeterminacy and bifurcations) are possible with smaller externalities, whatever the relative …