Growth and Indeterminacy in Dynamic Models with Externalities
AbstractIn this paper we study the indeterminacy of equilibria in infinite horizon capital accumulation models with technological externalities. Our investigation encompasses both models with bounded and unbounded accumulation paths, and models with one and two sectors of production. Under reasonable assumptions we find that equilibria are locally unique in the one sector economies. The situation is different in economies with two sectors of production. Here it is very easy to construct analytical examples where a positive external effect induces a two dimensional manifold of equilibria converging to the same steady state (in the bounded case) or to the constant growth rate (in the unbounded case). For the latter we also point out that the dynamic behavior of these equilibria is quite complicated and that persistent fluctuations in their growth rates are possible. Copyright 1994 by The Econometric Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 1382.
Date of creation: 09 Dec 2010
Date of revision:
Contact details of provider:
Web page: http://www.dklevine.com/
Other versions of this item:
- Boldrin, Michele & Rustichini, Aldo, 1994. "Growth and Indeterminacy in Dynamic Models with Externalities," Econometrica, Econometric Society, vol. 62(2), pages 323-42, March.
- NEP-ALL-2010-12-18 (All new papers)
- NEP-FDG-2010-12-18 (Financial Development & Growth)
- NEP-GTH-1998-08-31 (Game Theory)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David K. Levine).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.