Indeterminacy in the small open economy Ramsey growth model

This paper constructs a small open economy version of the two sector Benhabib-Farmer (1996) indeterminacy model. It can be shown that sunspot equilibria arise at significantly lower magnitude of increasing returns to scale than in the original dosed economy model. Furthermore, if a mix of externalities across sectors is admitted, indeterminacy can be obtained even with decreasing aggregate returns to scale.

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Year of publication:	1999
Authors:	Weder, Mark
Publisher:	Berlin : Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

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Series:	SFB 373 Discussion Paper ; 1999,30
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	72225640X [GVK] hdl:10419/61718 [Handle] RePEc:zbw:sfb373:199930 [RePEc]
Classification:	F4 - Macroeconomic Aspects of International Trade and Finance ; E32 - Business Fluctuations; Cycles
Source:	EconStor

Persistent link: https://www.econbiz.de/10010309995