Meng, Qinglai; Yip, Chong Kee - In: Journal of Macroeconomics 30 (2008) 1, pp. 97-110
By relaxing the restrictions commonly imposed on the magnitude of capital externalities in one-sector models with Cobb-Douglas technology, we find that indeterminacy can arise in the following two cases: (i) the felicity function is separable in consumption and leisure and there are negative...