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Indeterminacy in a small open economy with endogenous labor supply

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Author Info
Qinglai Meng
Andrés Velasco
Abstract

We establish conditions under which indeterminacy can occur in a small open economy business cycle model with endogenous labor supply. Indeterminacy requires small externalities in technologies with social constant returns to scale, independently of the intertemporal elasticities in both consumption and labor. Copyright Springer-Verlag Berlin Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s00199-002-0308-5
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Article provided by Springer in its journal Economic Theory.

Volume (Year): 22 (2003)
Issue (Month): 3 (October)
Pages: 661-669
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Handle: RePEc:spr:joecth:v:22:y:2003:i:3:p:661-669

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Related research
Keywords: Keywords and Phrases: Indeterminacy; Small open economy; Business cycles.; JEL Classification Numbers: E32; F12; F4.;

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  1. Luis Aguiar-Conraria & Yi Wen, 2005. "Foreign trade and equilibrium indeterminacy," Working Papers 2005-041, Federal Reserve Bank of St. Louis. [Downloadable!]
    Other versions:
  2. Kazuo Mino, 2008. "Preference Structure and Volatility in a Financially Integrated World," Discussion Papers in Economics and Business 08-05, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). [Downloadable!]
  3. Zhang, Yan, 2008. "Tariff and Equilibrium Indeterminacy--(II)," MPRA Paper 10043, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Mino, Kazuo, 2008. "Financial integration and volatility in a two-country world," MPRA Paper 16953, University Library of Munich, Germany. [Downloadable!]
  5. Patrick Pintus, 2004. "International Capital Mobility and Aggregate Volatility: the Case of Credit-Rationed Open Economies," Computing in Economics and Finance 2004 193, Society for Computational Economics. [Downloadable!]
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