INDETERMINACY AND SUNSPOTS IN A MONETARY ECONOMY WITH LIMITED PARTICIPATION

Authors
GUO JT
Citation
Jt. Guo, INDETERMINACY AND SUNSPOTS IN A MONETARY ECONOMY WITH LIMITED PARTICIPATION, Economics letters, 59(3), 1998, pp. 337-345
Citations number
15
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
59
Issue
3
Year of publication
1998
Pages
337 - 345
Database
ISI
SICI code
0165-1765(1998)59:3<337:IASIAM>2.0.ZU;2-S
Abstract
This paper shows that in a monetary real business cycle model with lim ited participation, the region of indeterminacy depends crucially on ( i) the coefficient of relative risk aversion, (ii) the labor supply el asticity, and (iii) the degree of increasing return-to-scale. However, the quantitative impact of the money growth rate is very small. (C) 1 998 Elsevier Science S.A.