Indeterminacy and sector-specific externalities

• 成果类型: Article; Proceedings Paper
• 署名作者: Benhabib, J; Farmer, REA
• 署名单位: University of California System; University of California Los Angeles; New York University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(96)01257-3
• 发表日期: 1996
• 页码: 421-443
• 关键词: Indeterminacy; sunspots; Real business cycles

摘要

We introduce mild increasing returns-to-scale into a version of the Real Business Cycle model. These increasing returns-to-scale occur as a consequence of sector-specific externalities, that is externalities where the output of the consumption and investment sectors have external effects on the output of firms within their own sector. Keeping the production technologies for both sectors identical for expositional simplicity, we show that indeterminacy can easily occur for parameter values typically used in the real business cycle literature, and in contrast to some earlier literature on indeterminacies, for externalities mild enough so that labor demand curves are downward-sloping.