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Indeterminacy in a variety expansion model of endogenous growth

Author

Listed:
  • Jorge Alcalde-Unzu

    (University of the Basque Country)

Abstract

In this paper, I demonstrate that an expanding variety model of endogenous growth with temporary monopoly power exhibits the indeterminacy of equilibrium paths. This implies the existence of a global range of initial growth rates for any initial level of the state variable.

Suggested Citation

  • Jorge Alcalde-Unzu, 2007. "Indeterminacy in a variety expansion model of endogenous growth," Economics Bulletin, AccessEcon, vol. 4(18), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-05d90003
    as

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    References listed on IDEAS

    as
    1. Matsuyama, Kiminori, 2001. "Growing through Cycles in an Infinitely Lived Agent Economy," Journal of Economic Theory, Elsevier, vol. 100(2), pages 220-234, October.
    2. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    4. Benhabib, Jess & Farmer, Roger E.A., 1999. "Indeterminacy and sunspots in macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 6, pages 387-448, Elsevier.
    5. Douglas Gale & Leslie J. Reinhorn, 1998. "Delay and Cycles: Erratum," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 357-359.
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    Keywords

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    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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