Indeterminacy with capital utilization and sector-specific externalities

Authors
Guo, JT Harrison, SG
Citation
Jt. Guo et Sg. Harrison, Indeterminacy with capital utilization and sector-specific externalities, ECON LETT, 72(3), 2001, pp. 355-360
Citations number
15
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
72
Issue
3
Year of publication
2001
Pages
355 - 360
Database
ISI
SICI code
0165-1765(200109)72:3<355:IWCUAS>2.0.ZU;2-O
Abstract
We show that the minimum level of increasing returns-to-scale needed for in determinacy in a two-sector real business cycle model with variable capital utilization and sector-specific externalities is extremely small. Moreover , this value is lower than that required in several of our model's predeces sors, and is quite easily within the range of empirical plausibility. (C) 2 001 Elsevier Science B.V. All rights reserved.