Global Externalities, Endogenous Growth and Sunspot fluctuations
AbstractWe consider a two-sector economy with Cobb-Douglas technologies,labor-augmenting global external effects and increasing social returns. We prove the existence of a normalized balanced growth path and we give conditions for the occurrence of sunspot fluctuations that are compatible with both types of capital intensity configuration at the private level provided the elasticity of intertemporal substitution in consumption admits intermediary values. We finally show that the existence of period-two cycles requires the consumption good to be physical capital intensive at the private level.
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 HAL in its series Working Papers with number halshs-00282091.
Date of creation: 26 May 2008
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00282091/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Global externalities; increasing returns; endogenous growth; intertemporal substitution in consumption; indeterminacy; sunspot fluctuations; period-two cycles;
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.