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Intra-Industry Trade, Involuntary Unemployment and Macroeconomic Stability

Le Riche, Antoine; Lloyd-Braga, Teresa; Modesto, Leonor - 2021

indeterminate. After opening the borders, the rigid wage country may export indeterminacy to the full employment country …, particularly if it is big enough. In contrast, when the full employment country is sufficiently big, local indeterminacy, and … fluctuations (associated with local indeterminacy and bifurcations) are possible with smaller externalities, whatever the relative …

Persistent link: https://www.econbiz.de/10012497948

Existence of adaptively stable sunspot equilibria near an indeterminate steady state

Evans, George W.; Honkapohja, Seppo - 2001

We examine the nonlinear model Xt = Et F(xt+1) . Markov SSEs exist near an indeterminate steady state, X = F(X), provided F´(X)> 1. We show that there exist Markov SSEs that are E-stable, and therefore locally stable under adaptive learning, if F´(X)< -1.

Persistent link: https://www.econbiz.de/10011398793

Expectational stability of resonant frequency sunspot equilibria

Evans, George W.; Honkapohja, Seppo - 2001

We consider the stability under adaptive learning of the complete set of solutions to the model when . In addition to the fundamentals solution, the literature describes both finite-state Markov sunspot solutions, satisfying a resonant frequency condition, and autoregressive solutions depending...

Persistent link: https://www.econbiz.de/10011398912

Stable sunspot equilibria in a cash-in-advance economy

Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - 2001

We develop a monetary model with flexible supply of labor, cash in advance constraints and government spending financed by seignorage. This model has two regimes. One regime is conventional with two steady states. The other regime has a unique steady state which can be determinate or...

Persistent link: https://www.econbiz.de/10011408407

Intra-industry trade, involuntary unemployment and macroeconomic stability

Le Riche, Antoine; Lloyd-Braga, Teresa; Modesto, Leonor - 2021

Persistent link: https://www.econbiz.de/10012419065

Stable Sunspot Equilibria in a Cash-in-Advance Economy

Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

We analyze a monetary model with flexible labor supply, cash-inadvance constraints and seigniorage-financed government deficits. If the intertemporal elasticity of substitution of labor is greater than one, there are two steady states, one determinate and the other indeterminate. If the...

Persistent link: https://www.econbiz.de/10010851434

Indeterminacy and sunspots in two-sector RBC models with generalized no-income-effect preferences

Dufourt, Frédéric; Nishimura, Kazuo; Venditti, Alain - In: Journal of Economic Theory 157 (2015) C, pp. 1056-1080

function of various structural parameters. We show that local indeterminacy occurs through flip and Hopf bifurcations for a …

Persistent link: https://www.econbiz.de/10011263592

Indeterminacy and cycles in two-sector discrete-time model

Nishimura, Kazuo; Benhabib, Jess; Venditti, Alain - In: Economic Theory 20 (2002) 2, pp. 217-235

that indeterminacy of steady states and cycles can easily arise with constant or decreasing social returns to scale, and … increasing social returns are required to generate indeterminacy. …

Persistent link: https://www.econbiz.de/10005370799

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

Expectational stability of sunspot equilibria in non-convex economies

McGough, Bruce; Meng, Qinglai; Xue, Jianpo - In: Journal of Economic Dynamics and Control 37 (2013) 6, pp. 1126-1141

-sloping and steeper than the Frisch labor-supply curve – is necessary for joint indeterminacy and E-stability. Then, with a … space corresponding to stable indeterminacy, that is, learnable sunspot equilibria. These existence results overturn the …

Persistent link: https://www.econbiz.de/10010871022