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Local Home Environment Externality is a Source of Indeterminacy

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  • Shiro Kuwahara
  • Katsunori Yamada

Abstract

We address the local home environment externality conceptualized by Galor and Tsiddon (1997a; 1997b) in the two sector growth model of Lucas (1988). We show that this version of externality related to human capital accumulation process can be a source of indeterminacy.

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File URL: http://www.iser.osaka-u.ac.jp/library/dp/2009/DP0722R.pdf
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Bibliographic Info

Paper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0722.

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Date of creation: Nov 2008
Date of revision: Jul 2009
Handle: RePEc:dpr:wpaper:0722

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