Indeterminacy in a model with aggregate and sector-specific externalities

We present a two sector dynamic general equilibrium model with both sector-specific and aggregate externalities. We find that including the aggregate effects allows for a trade-off between the sizes of the two types of externalities needed for indeterminacy.

Saved in:
Bibliographic Details
Published in:Economics letters 2000-11, Vol.69 (2), p.173-179
Main Authors: Harrison, Sharon, Weder, Mark
Format: Article
Language:English
Subjects:
Applied general equilibrium models
Economic activity
Externalities
Indeterminacy
Production
Production Externalities
Returns to scale
Sunspots
Trade-off
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We present a two sector dynamic general equilibrium model with both sector-specific and aggregate externalities. We find that including the aggregate effects allows for a trade-off between the sizes of the two types of externalities needed for indeterminacy.
ISSN:0165-1765
1873-7374
DOI:10.1016/S0165-1765(00)00294-9