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show that when labor is inelastic, for any configuration of the returns to scale, local indeterminacy is obtained if there … indeterminacy arises if the investment good sector has increasing social returns, provided the consumption good is labor intensive …, we show that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns …
Persistent link: https://www.econbiz.de/10008794794
The aim of this paper is to discuss the role of the elasticity of capital-labor substitution on the local determinacy properties of the steady state in a two-sector economy with CES technologies and sector-specific externalities.
Persistent link: https://www.econbiz.de/10008793513
In this paper, we study the two-sector CES economy with sector-specific externality (feedback effects) following Nishimura and Venditti \(2004). We characterize the equilibrium paths in the case that allows negative externality. That equilibrium paths were not explicitly discussed by Nishimura...
Persistent link: https://www.econbiz.de/10008793770
In this paper, we study a two-sector CES economy with sector-specific externality as described by Nishimura and Venditti (2004). We characterize the equilibrium paths in the case that allows negative externality as that equlibrium paths were not explicitly discussed by Nishimura and Venditti. We...
Persistent link: https://www.econbiz.de/10008794276
and a concave homogeneous non-separable utility function. We show that local indeterminacy arises with a low elasticity of … local indeterminacy requires a large enough elasticity of intertemporal substitution in consumption. …
Persistent link: https://www.econbiz.de/10008488928
We consider a two-sector economy with Cobb-Douglas technologies,labor-augmenting global external effects and increasing social returns. We prove the existence of a normalized balanced growth path and we give conditions for the occurrence of sunspot fluctuations that are compatible with both...
Persistent link: https://www.econbiz.de/10008793802
Persistent link: https://www.econbiz.de/10011441025
Persistent link: https://www.econbiz.de/10011525435
Persistent link: https://www.econbiz.de/10011850351
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 …
Persistent link: https://www.econbiz.de/10010933924