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 …

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 …

subject sunspot fluctuations around this trap (i.e., local indeterminacy). When R&D spillovers are large, both the zero …

aggregate level. The model features multiple equilibria and (local and global) indeterminacy. Expectations matter for resulting … the consequences of macroeconomic supply side policy and the pattern of East-West convergence. …

aggregate level. The model features multiple equilibria as well as (local and global) indeterminacy. Expectations matter for …

) indeterminacy. Hence, expectations matter for resulting equilibrium dynamics. Despite its simplicity, the model creates a rich set … fundamentals in models with indeterminacy. The model is applied to replicate two striking empirical characteristics of …