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The Appearance of Indeterminacy Paths-An Economy with the Balanced Budget Rule and without Depreciation

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  • Fujio Takata

    (Graduate School of Economics, Kobe University)

Abstract

This paper deals with multiple movement patterns in an economy with infinite capital duration. It demonstrates what conditions are required for indeterminacy. Moreover, itshows that the capital duration is unrelated with the movement patterns.

Suggested Citation

  • Fujio Takata, 2020. "The Appearance of Indeterminacy Paths-An Economy with the Balanced Budget Rule and without Depreciation," Discussion Papers 2001, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2001
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2020/2001.pdf
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    References listed on IDEAS

    as
    1. Hansen, Gary D., 1985. "Indivisible labor and the business cycle," Journal of Monetary Economics, Elsevier, vol. 16(3), pages 309-327, November.
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    4. Fujio Takata, 2017. "Two Steady States and Two Movement Patterns under the Balanced Budget Rule - An Economy with Divisible Labor," Discussion Papers 1702, Graduate School of Economics, Kobe University.
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    6. Schmitt-Grohe, Stephanie & Uribe, Martin, 1997. "Balanced-Budget Rules, Distortionary Taxes, and Aggregate Instability," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 976-1000, October.
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