Indeterminacy and increasing returns

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Web22 aug. 2012 · Finally, our main conclusion shows that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns, but requires … Webreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). …

Tariff Policy, Increasing Returns and Endogenous Fluctuations

Web13 feb. 2006 · This paper examines the long-run effects of capital income taxes, labor income taxes, and expenditure taxes in an R&D-based model of endogenous growth with endogenous labor supply. The main contribution of this paper is to investigate how tax effects on long-run growth are influenced by the emergence of indeterminate equilibria. … Webbetween private and social returns is necessary for indeterminacy, this in no way requires decreasing marginal costs or increasing marginal returns in production. For reasons also given at the end of Sect.13.2, indeterminacy can arise in a constant returns two-sector economy only if the utility of consumption is close to linear. lyons no 3 coffee

Increasing Returns and the Design of Interest Rate Rules

Web17 sep. 2008 · We study the effects of government tariff policy in a one-sector small open economy RBC model with a productive externality that generates social increasing returns to scale. Various forms of ... Web1 feb. 1991 · The most important assumption is increasing returns to scale, and monopolistic competition makes increasing returns consistent with each … Web26 feb. 2024 · This paper systematically examines the interrelations between equilibrium indeterminacy, endogenous entry and exit of intermediate input firms, and increasing … lyons new york food closet

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INDETERMINACY AND INVESTMENT ADJUSTMENT COSTS: AN A…

Webreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). In conﬁrmation of this, there is a work by Giammarioli (2003) that sets forth a dynamic search model developed in continuous time in which a representative agent WebEquilibrium Indeterminacy, Endogenous Entry and Exit, and Increasing Returns to Specialization Shu-Hua Cheny National Taipei University Jang-Ting Guoz University of … lyon snowboard shopWebTools. In economics, the term sunspots (or sometimes "a sunspot") refers to an extrinsic random variable, that is, a random variable that does not affect economic fundamentals (such as endowments, preferences, or technology ). Sunspots can also refer to the related concept of extrinsic uncertainty, that is, economic uncertainty that does not ... lyons nippy chocolates

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Indeterminacy and increasing returns

Capacity Utilization under Increasing Returns to Scale

Web1 mei 1991 · This paper asks whether adjustment processes over real time help to “select” the long-run outcome in a model of industrialization, where multiple stationary states … Web22 aug. 2012 · Second, we prove that when labor is infinitely elastic, saddlepoint stability is obtained if the investment good sector has constant social returns, whereas local indeterminacy arises if the investment good sector has increasing social returns and the elasticity of intertemporal substitution in consumption admits intermediate values.

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Web1 jun. 1994 · Indeterminacy and Increasing Returns. We investigate properties of the one-sector growth model with increasing returns under two organizational structures … WebDive into the research topics of 'Increasing Returns, Industrialization, and Indeterminacy of Equilibrium'. Together they form a unique fingerprint. Industrialization Social Sciences. …

Web1 aug. 2005 · Increasing returns to scale arises due to production externalities. 4 Even though the individual-level private technology features constant returns to scale, Y i = ... Indeterminacy and increasing returns. Journal of Economic Theory, 63 (1994), pp. 19-41. View PDF View article Google Scholar. Benhabib and Farmer, 1996. Web1 feb. 2014 · It is shown that the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy; and when the degree of …

Web1 feb. 2000 · This paper examines the stability of a small open economy under alternative income taxation rules. Using a one-sector real business cycle model with external increasing returns, we show that if the income tax schedule is linear, the small open economy will not generate equilibrium indeterminacy, but it exhibits a diverging … Web1 nov. 2000 · The purpose of this paper is to characterize the possibility of indeterminacy in multisector growth models that exhibit constant marginal returns to scale at the social level, with empirically realistic small external effects. Our results demonstrate that indeterminacy does not require increasing returns to scale, large external effects, or close to linear …

WebWith very mild increasing returns supported by empirical research, the conventional wisdom regarding the design of interest rate rules can be overturned. In particular, the “Taylor …

WebWe investigate properties of the one-sector growth model with increasing returns under two organizational structures capable of reconciling the existence of aggregate increasing … kirac mission witnessWeb1 jan. 2012 · One of the primary concerns of this literature has been the empirical plausibility of indeterminacy, which arises in markets with external effects or with monopolistic competition, often coupled... lyons numberWeb26 sep. 2002 · FISCAL POLICY, INCREASING RETURNS, AND ENDOGENOUS FLUCTUATIONS - Volume 6 Issue 5. Due to planned system work, ... A NOTE ON INDETERMINACY AND INVESTMENT ADJUSTMENT COSTS IN AN ENDOGENOUSLY GROWING SMALL OPEN ECONOMY. Macroeconomic Dynamics, Vol. 16, Issue. S3, p. … kira clothesWeb"Indeterminacy and Increasing Returns," UCLA Economics Working Papers 646, UCLA Department of Economics. Benhabib, Jess & Farmer, Roger E.A., 1991. " … lyons nursing home cumberland mdWebFor example, Basu and Fernald (1994, 1997) conclude that the returns to scale is between 1.03 and 1.09. Laitner and Stolyarov (2004) use stock market data to estimate the returns to scale and obtain values between 1.09 and 1.11. In our model, the minimum level of increasing returns to generate indeterminacy is as low as 1.06. lyons nursing home indianaWebINCREASING RETURNS, INDUSTRIALIZATION, AND INDETERMINACY OF EQUILIBRIUM* This paper asks whether adjustment processes over real time help to … kira clayton\\u0027s seasonWeb1 feb. 2014 · Specifically, the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy, and when the degree of … lyons ny directions