Characterization of Equilibrium Paths in a Two-Sector Economy with CES Production Functions and Sector-Specific Externality

In this paper, we study a two-sector CES economy with sector-specific externality as described by Nishimura and Venditti (2004). We characterize the equilibrium paths in the case that allows negative externality as that equlibrium paths were not explicitly discussed by Nishimura and Venditti. We show how the degree of externality affects the local behavior of the equilibrium path around the steady state.

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Year of publication:	2008-05-23
Authors:	Matsuo, Miki ; Nishimura, Kazuo ; Sakagami, Tomoya ; Venditti, Alain
Institutions:	HAL
Subject:	Two-sector economy \| sector-specific externalities \| indeterminacy \| capital-labor substitution

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00281642/en/
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008794276