technologies for both sectors identical, for expositional simplicity, we show that indeterminacy can easily occur for parameter …

generation EBC1 models to second generation EBC2 models. I argue that EBC1 models, which display dynamic indeterminacy, are part … steady-state indeterminacy, are a more radical departure from the classical Real Business Cycle model; they represent a …

indeterminate and stable sunspots are possible. We find that capital adjustment costs of any size preclude stable sunspots for every … size are considered, a necessary condition for the existence of stable sunspots is an upward-sloping labour demand curve in … the standard result that when we abstract from capital adjustment costs, stable sunspots occur in the two-sector model for …

The Paper approaches business cycles in terms of extrinsic uncertainty related, not to dynamic indeterminacy of … static indeterminacy of free entry oligopolistic equilibria within each period. We consider an OLG economy in which firms … dynamic indeterminacy, we can weaken the condition on the degree of increasing returns, which may be arbitrarily small (with a …