Local and global indeterminacy in two-sector models of endogenous growth
AbstractIn this paper we consider a two-sector endogenous growth model where the productions of the final good and human capital require economy-wide external effects. Assuming constant returns to scale at the private and social levels, we show that local and global indeterminacy of equilibrium paths are compatible with any values for the elasticity of intertemporal substitution in consumption and any sign for the capital intensity difference across the two sectors.
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Date of creation: 28 Jul 2009
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Two-sector model; endogenous growth; economy-wide externalities; local and global indeterminacy;
Other versions of this item:
- Brito, Paulo & Venditti, Alain, 2010. "Local and global indeterminacy in two-sector models of endogenous growth," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 893-911, September.
- NEP-ALL-2009-08-08 (All new papers)
- NEP-DGE-2009-08-08 (Dynamic General Equilibrium)
- NEP-HRM-2009-08-08 (Human Capital & Human Resource Management)
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