Indeterminacy with Non-Separable Utility.

Benhabib and Farmer [3] showed that a single sector growth model in the presence of increasing returns-to-scale may display an indeterminate equilibrium if the demand and supply curves cross with the "wrong slopes". We generalize their result to a model with preferences that are non-separable in consumption and leisure.

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Year of publication:	1999
Authors:	Bennett, R.L. ; Farmer, R.E.A.
Institutions:	Department of Economics, European University Institute
Subject:	ECONOMIC GROWTH \| ECONOMIC MODELS

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Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	28 pages
Classification:	C50 - Econometric Modeling. General ; O40 - Economic Growth and Aggregate Productivity. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005816438