We show that indeterminacy can easily arise in multi-sector models that have constant variable returns to scale and … indeterminacy, and which have been criticized on the basis of recent empirical estimates indicating that returns to scale are …

global indeterminacy. These theoretical results support the large empirical literature on the relationship between financial …

a small time-to-build delay rules out local indeterminacy. …

) indeterminacy. Hence, expectations matter for resulting equilibrium dynamics. Despite its simplicity, the model creates a rich set … fundamentals in models with indeterminacy. The model is applied to replicate two striking empirical characteristics of …

-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 …

) indeterminacy. Hence, expectations matter for resulting equilibrium dynamics. Despite its simplicity, the model creates a rich set … fundamentals in models with indeterminacy. The model is applied to replicate two striking empirical characteristics of …