We present a neoclassical model of capital accumulation with frictional labour markets. Under standard parameter values the equilibrium of the model is indeterminate and consequently displays expectations-driven business cycles - so-called endogenous business cycles. We study the properties of...

This paper studies the cointegration properties of vector autoregressive models having a block triangular structure, where unit roots may appear in either the marginal or conditional subsystems, or both. In the former case, the conventional stability analysis of dynamic systems is extended to...