This paper proves existence of a multiplicity of equilibria in a 2-period TGE model with money and nominal rigidities. Households have in- complete preferences and firms reach decisions through the “control principle” (cf. Dr`eze 1989).

This article studies the long-run direction of technological change in an endogenous growth model. Development is modeled as a sequence of temporary equilibria in an overlapping generations framework. We introduce a concept of `long-run efficient development' which excludes persistent...