externalities, giving rise to a three-dimensional dynamic system (the framework is the one introduced by Wirl (1997)). The dynamics …

homothetic preferences (e.g., Lloyd-Braga, Nourry and Venditti, 2007). We show that under numerical calibrations of the … parameters, local indeterminacy can occur for distortionary tax rates that are empirically plausible for the U.S. economy … the elasticity of intertemporal substitution in consumption is slightly greater than unity. These indeterminacy conditions …

In this paper we consider a Ramsey one-sector model with non-separable homothetic preferences, endogenous labour and … productive external effects arising from average capital and labour. We show that indeterminacy cannot arise when there are only … capital externalities but that it does when there are only labour external effects. We prove that sunspot fluctuations are …

the wage income, local indeterminacy of equilibria cannot occur with capital externalities alone but that it can occur … periods of life, homothetic preferences and productive external effects coming from the average capital and labour. We show … when there are only, however small, labour externalities. More precisely, under gross substitutability, the existence of …

indeterminacy. …

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. …

reasonable share of first period consumption over the wage income, local indeterminacy can easily occur with small distortionary …

(indeterminacy and cycles) can emerge depending on two parameters : the elasticity of intertemporal substitution in consumption and …

models with social increasing returns to scale where indeterminacy occurs. Although an efficient optimal policy does not … the relaxed problem. This configuration is closely related to indeterminacy: by contrast, when the steady state is …