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 …

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 …

redistributed across households in steady state. Inequality leads to equilibrium indeterminacy and undermines the theoretical …

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 …