externality helps to generate equilibrium indeterminacy together with production externality. Specifically, the existence of … consumption externality reduces the upper and lower bounds of production externality for local indeterminacy, and when the degree … of consumption externality increases, the upper and lower bounds of production externalities for local indeterminacy are …

) model may have a unique stable solution (determinacy) against the alternative of multiple stable solutions (indeterminacy … indeterminacy and that are not identifiable under determinacy, (ii) does not involve inequality parametric restrictions and hence … against dynamic misspecification in finite samples. An empirical illustration focuses on the determinacy/indeterminacy of a …

) in production, affects different balanced-budget tax rules. Analytically, we show that indeterminacy can occur under capital income … taxation only when the EOS is very low, whereas indeterminacy under labor income taxation is not subject to the EOS restriction …

-type test for the orthogonality restrictions (OR) implied by the system of Euler equations. The hypothesis of indeterminacy and … ModerationÓ period, our results offer formal support to the hypothesis of a switch from indeterminacy to a scenario consistent …

Equilibrium indeterminacy due to economies of scale (ES) in financial intermediation is quantitatively examined in a … various assumptions on nominal rigidities and the timing of deposit decisions. The results suggest that indeterminacy arises …

a constraint can however be a fundamental source of indeterminacy, and therefore, of expectation-driven fluctuations …