Maliar, Lilia; Kylymnyuk, Dmytro; Maliar, Serguei - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2005
This paper studies the implications of a dynamic general equilibrium model with three production sectors, which are agriculture, industry and services. Due to the assumption of increasing returns in industry and services, our model has multiple equilibria. Two equilibria are stable: one, in...