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 …

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

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 …

-cycle fluctuations. Externalities can lead to indeterminacy, allowing self-fulfilling expectations to determine the equilibrium. This … paper argues that the importance of indeterminacy might be overstated by the literature, as it does not recognize that …. This implies that the aggregate characteristics may not be informative even when there is determinacy. Thus indeterminacy …

continuum of equilibria; adding incomplete markets may lead to real indeterminacy. …

provide examples of two economic models. Model 1 displays an indeterminate equilibrium, driven by sunspots. Model 2 displays a …