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Tax Policy and Stability in a Model with Sector-Specific Externalities

Guo, Jang-Ting; Harrison, Sharon G. - In: Review of Economic Dynamics 4 (2001) 1, pp. 75-89

a flat or progressive tax scheme (such as that in the U.S.) is more susceptible to indeterminacy and sunspot …

Persistent link: https://www.econbiz.de/10005091021

Indeterminacy and the distribution of growth rates

Alfred, Greiner; Krueger Jens J. - In: Economics Bulletin 15 (2001), pp. 1-7

In endogenous growth theory models exist which are characterized by local and global indeterminacy. These concepts … imply that economies differ with respect to their growth rates on the transition path (local indeterminacy) as well as their … long-run growth rates (global indeterminacy). While the empirical density function of the levels of aggregate GDP has been …

Persistent link: https://www.econbiz.de/10005094630

Monetary Policy and Equilibrium Indeterminacy in a Cash-in-Advance Economy with Investment

Yip, Chong Kee; Li, Ka Fai - In: Economics Bulletin 5 (2004) 2, pp. 1-7

find that active interest rate rules generate equilibrium uniqueness, but passive rules can lead to real indeterminacy …. Simulation shows that even in the presence of investment, passive rules are very likely to render indeterminacy. …

Persistent link: https://www.econbiz.de/10005094883

Sunspot equilibria in a monetary economy with capital accumulation

BLOISE, Gaetano; MAGRIS, Francesco - Center for Operations Research and Econometrics (CORE), … - 2000

In this paper, we consider the determinacy of equilibrium prices, interest rate and income in an economy with liquidity constraints and capital accumulation. In particular, we show that, even though no extrinsic uncertainty effects fundamentals, under some conditions, rational expectations...

Persistent link: https://www.econbiz.de/10005008162

Education and growth with endogenous debt constraints

DE LA CROIX, David; MICHEL, Philippe - Center for Operations Research and Econometrics (CORE), … - 2004

global indeterminacy. Comparing outcomes across the various equilibria we show that the relation between growth and yields is …

Persistent link: https://www.econbiz.de/10005008405

Continua of underemployment equilibria

DREZE, Jacques H.; HERINGS, P. Jean-Jacques - Center for Operations Research and Econometrics (CORE), … - 1998

In this paper the existence of unemployment is partly explained as being the result of coordination failures. This is achieved by considering a standard general equilibrium model and splitting the set of commodities in two groups. The first group contains commodities like gold. The prices of...

Persistent link: https://www.econbiz.de/10005008548

Overlapping Generations Models of General Equilibrium

Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2008

from the Arrow-Debreu model, yet its equilibrium set has different properties: Pareto inefficiency, indeterminacy, positive …

Persistent link: https://www.econbiz.de/10005010139

Continua of underemployment equilibria reflecting coordination failures, also at Walrasian prices

CITANNA, Alessandro; CRES, Herve; DREZE, Jacques; … - HEC Paris (École des Hautes Études Commerciales) - 2001

In this paper the existence of unemployment is partly explained as being the result of coordination failures. It is shown that as a result of self-fulfilling pessimistic expectations, even at Walrasian prices, a continuum of equilibria results, among which an equilibrium with approximately no...

Persistent link: https://www.econbiz.de/10005011531

On rational exuberance.

Bosi, Stefano; Seegmuller, Thomas - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2009

In his seminal contribution, Tirole (1985) shows that an overlapping generations economy may monotonically converges to a steady state with a positive rational bubble, characterized by the dynamically efficient golden rule. The issue we address is whether this monotonic convergence to an...

Persistent link: https://www.econbiz.de/10005012503

Dynamic effects of government expenditure in a finance constrained economy: A Note

Chen, Yan; Zhang, Yan - Volkswirtschaftliche Fakultät, … - 2009

Gokan [Dynamic effects of government expenditure in a finance constrained economy, J. Econ. Theory 127 (2006) 323-333] introduces constant government expenditure (financed by labor income taxes) in Woodford's model with capital-labor substitution and investigates how local dynamics near two...

Persistent link: https://www.econbiz.de/10005014725