Indeterminacy and increasing returns

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Webreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). … WebIndeterminacy and Increasing Returns Author & abstract Download & other version 19 References 578 Citations Most related Related works & more Corrections Author Listed: …

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Web22 aug. 2012 · Second, we prove that when labor is infinitely elastic, saddlepoint stability is obtained if the investment good sector has constant social returns, whereas local indeterminacy arises if the investment good sector has increasing social returns and the elasticity of intertemporal substitution in consumption admits intermediate values. Web1 jun. 1994 · Indeterminacy and Increasing Returns. We investigate properties of the one-sector growth model with increasing returns under two organizational structures … is a cheshire cat real

(In)determinacy, increasing returns, and the optimality of …

Web1 feb. 2014 · It is shown that the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy; and when the degree of … Web30 dec. 2024 · Second, following a fiscal expansion, increasing returns to specialization lead to a positive linkage between real wages and aggregate output, ... Increasing Returns to Variety and Local Indeterminacy”, Review of Economic Dynamics, Vol. 14, No. 2, pp. 384–388. Article Google Scholar is a chess a sport

Increasing returns in matching and labour market dynamics

Indeterminacy and Increasing Returns - Research Papers in …

WebTools. In economics, the term sunspots (or sometimes "a sunspot") refers to an extrinsic random variable, that is, a random variable that does not affect economic fundamentals (such as endowments, preferences, or technology ). Sunspots can also refer to the related concept of extrinsic uncertainty, that is, economic uncertainty that does not ... WebWith very mild increasing returns supported by empirical research, the conventional wisdom regarding the design of interest rate rules can be overturned. In particular, the “Taylor … is a chess board and a checker board the sameWebreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). In conﬁrmation of this, there is a work by Giammarioli (2003) that sets forth a dynamic search model developed in continuous time in which a representative agent is a chesapeake bay retriever a lab

"Web"Indeterminacy and Increasing Returns," UCLA Economics Working Papers 646, UCLA Department of Economics. Benhabib, Jess & Farmer, Roger E.A., 1991. " … " - Indeterminacy and increasing returns

Indeterminacy and increasing returns

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WebINCREASING RETURNS, INDUSTRIALIZATION, AND INDETERMINACY OF EQUILIBRIUM* This paper asks whether adjustment processes over real time help to … WebDive into the research topics of 'Increasing Returns, Industrialization, and Indeterminacy of Equilibrium'. Together they form a unique fingerprint. Industrialization Social Sciences. …

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Web1 mei 1991 · This paper asks whether adjustment processes over real time help to “select” the long-run outcome in a model of industrialization, where multiple stationary states … WebFor example, Basu and Fernald (1994, 1997) conclude that the returns to scale is between 1.03 and 1.09. Laitner and Stolyarov (2004) use stock market data to estimate the returns to scale and obtain values between 1.09 and 1.11. In our model, the minimum level of increasing returns to generate indeterminacy is as low as 1.06.

WebINCREASING RETURNS AND THE DESIGN OF INTEREST RATE RULES WEI XIAO State University of New York at Binghamton We introduce increasing returns to scale … WebEconomics had long known about increasing returns but didn't know how to deal with them. Alfred Marshall speculated in 1890 that if N firms competed and each had increasing returns, the market would go to “whatever firm first gets a good start.” But there was an indeterminacy: in principle any of the N firms could win.

Web1 jan. 2002 · It is now widely recognized that to generate indeterminacy, standard one-sector models require relatively large increasing returns to scale and externalities (e.g., Benhabib and Farmer, 1994; Farmer and Guo, 1994), while multisector models are capable of generating indeterminacy under mild increasing returns or even under constant … Web17 sep. 2008 · We study the effects of government tariff policy in a one-sector small open economy RBC model with a productive externality that generates social increasing returns to scale. Various forms of ...

Web26 sep. 2002 · FISCAL POLICY, INCREASING RETURNS, AND ENDOGENOUS FLUCTUATIONS - Volume 6 Issue 5. Due to planned system work, ... A NOTE ON INDETERMINACY AND INVESTMENT ADJUSTMENT COSTS IN AN ENDOGENOUSLY GROWING SMALL OPEN ECONOMY. Macroeconomic Dynamics, Vol. 16, Issue. S3, p. …

Web24 nov. 2011 · While the early results on indeterminacy relied on relatively large increasing returns and high markups, more recently Benhabib and Farmer (1996a) showed that indeterminacy can also occur in two-sector models with small sector-specific external effects and very mild increasing returns. Keywords. External Effect; Constant Return; … old time horror moviesWeb1 nov. 2000 · The purpose of this paper is to characterize the possibility of indeterminacy in multisector growth models that exhibit constant marginal returns to scale at the social level, with empirically realistic small external effects. Our results demonstrate that indeterminacy does not require increasing returns to scale, large external effects, or close to linear … is a chess board the same as a checkerboardWeb1 feb. 1991 · The most important assumption is increasing returns to scale, and monopolistic competition makes increasing returns consistent with each … is a chesapeake bay retriever right for meWeb1 feb. 2000 · This paper examines the stability of a small open economy under alternative income taxation rules. Using a one-sector real business cycle model with external increasing returns, we show that if the income tax schedule is linear, the small open economy will not generate equilibrium indeterminacy, but it exhibits a diverging … old time horseWebIndeterminacy and Increasing Returns. Indeterminacy and Increasing Returns. Jess Benhabib. 1994, Journal of Economic Theory. See Full PDF Download PDF. is a chess coach worth itWeb1 feb. 2008 · With very mild increasing returns supported by empirical research, the conventional wisdom regarding the design of interest rate rules can be overturned. In particular, the Taylor principle... old time horror actorsWebWe investigate properties of the one-sector growth model with increasing returns under two organizational structures capable of reconciling the existence of aggregate increasing … old time horror movies on youtube