Most existing evidences for indeterminacy are obtained from analyzing models that do not consider trade. This paper … that even though indeterminacy arises under autarky, it can be eliminated when trade takes place with another country … exhibiting saddle-path stability. Consequently, support for indeterminacy from calibrating an autarkic framework should be …

/horizon pairs associated with unique and stable equilibria. Three key findings emerge: first, indeterminacy occurs for any value of … indeterminacy is intrinsically more serious in the open economy. Third, the problem is compounded further in the open economy when …

public spending subject to congestion. As was shown earlier by Wen 1998, variable capacity utilization leads to indeterminacy … parameters. More progressive tax schedule increases the area of indeterminacy at the expense of the absolute instablity region …