Alonso-Carrera, Jaime; Caballé, Jordi; Raurich, Xavier - Departament d'Economia i Història Econòmica, … - 2005
In this paper, we show that consumption externalities are a source of equilibrium indeterminacy in a growth model with …' consumption is constant along the equilibrium path, the equilibrium does not exhibit indeterminacy. In contrast, when that … marginal rate of substitution is not constant, the equilibrium may exhibit indeterminacy even if the elasticity of the labor …
