On intersectoral asymmetries in factors substitutability, "Equilibrium Production Possibility Frontiers" and the emergence of indeterminacies
The existence of asymmetries in factors substitutability between the distinct sectors of a given economy will directly rule the influence that spillover effects have upon its determinacy properties. For leading intersectoral spillover effects, the substitutability of the capital good industry together with a potential relative profit shares reversal—itself conditional to the existence of asymmetries between the intrasectoral and intersectoral spillover effects of at least one sector—between the private and the equilibrium level will, e.g., be at the core of the area for local indeterminacies. This proceeds from external dimensions which do not modify the constant returns to scale hypothesis that is retained at the decentralised level of the firm as they directly relate to equilibrium factors costs and outputs prices. The generality of the current approach and the genericity of the associated production set enlighten the role of the irregularities that prevail across the substitutability properties of the various sectors of a given economy but also, in the same vein, of the occurrence of heterogeneities between the intrasectoral and intersectoral spillovers emanating from a given industry, this gap being in turn weighted by the substitutability properties of this industry. It is shown that these multiplicity conclusions directly result from unusual properties of the Equilibrium Production Possibility Frontier that formulate as the occurrence of an equilibrium complementarity between the two outputs.
(This abstract was borrowed from another version of this item.)
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michele Boldrin & Aldo Rustichini, 2010.
"Growth and Indeterminacy in Dynamic Models with Externalities,"
Levine's Working Paper Archive
1382, David K. Levine.
- Boldrin, Michele & Rustichini, Aldo, 1994. "Growth and Indeterminacy in Dynamic Models with Externalities," Econometrica, Econometric Society, vol. 62(2), pages 323-42, March.
- Jean-Michel Grandmont & P, A, Pintus & R, De Vilder, 1997.
"Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles,"
97-28, Centre de Recherche en Economie et Statistique.
- Grandmont, Jean-Michel & Pintus, Patrick & de Vilder, Robin, 1998. "Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles," Journal of Economic Theory, Elsevier, vol. 80(1), pages 14-59, May.
- GRANDMONT, Jean-Michel & PINTUS, Patrick & de VILDER, Robin, 1997. "Capital-labor substitution and competitive nonlinear endogenous business cycles," CORE Discussion Papers 1997087, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Benhabib, J. & Nishimura, K. & Venditti, A., 1999.
"Indeterminacy and Cycles in Two-Sector Discrete-Time Models,"
99a58, Universite Aix-Marseille III.
- Kazuo Nishimura & Jess Benhabib & Alain Venditti, 2002. "Indeterminacy and cycles in two-sector discrete-time model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 20(2), pages 217-235.
- Benhabib, Jess & Farmer, Roger E. A., 1996.
"Indeterminacy and sector-specific externalities,"
Journal of Monetary Economics,
Elsevier, vol. 37(3), pages 421-443, June.
- Benhabib, Jess & Farmer, Roger E.A., 1995. "Indeterminacy and Sector-Specific Externalities," Working Papers 95-02, C.V. Starr Center for Applied Economics, New York University.
- Benhabib, Jess & Farmer, Roger E.A., 1996. "Indeterminacy and Sector-Specific Externalities," Working Papers 96-12, C.V. Starr Center for Applied Economics, New York University.
- Roger E.A. Farmer, 1994. "Indeterminacy and Sector-Specific Externalities," UCLA Economics Working Papers 722, UCLA Department of Economics.
- Benhabib, Jess & Farmer, Roger E A, 1996. "Indeterminacy and Sector-specific Externalities," CEPR Discussion Papers 1403, C.E.P.R. Discussion Papers.
- G, Cazzavillan & T, Lloyd-Braga & P, A, Pintus, 1997.
"Multiple Steady States and Endogenous Fluctuations with Increasing Returns to Scale in Production,"
97-29, Centre de Recherche en Economie et Statistique.
- Cazzavillan, Guido & Lloyd-Braga, Teresa & Pintus, Patrick A., 1998. "Multiple Steady States and Endogenous Fluctuations with Increasing Returns to Scale in Production," Journal of Economic Theory, Elsevier, vol. 80(1), pages 60-107, May.
- Cazzavillan, Guido & Lloyd-Braga, Teresa & Pintus, Patrick, 1996. "Multiple steady states and endogenous fluctuations with increasing returns to scale in production," CEPREMAP Working Papers (Couverture Orange) 9618, CEPREMAP.
- Venditti, Alain, 1998.
"Indeterminacy and endogenous fluctuations in two-sector growth models with externalities,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 33(3-4), pages 521-542, January.
- Venditti, A., 1996. "Indeterminancy and Endogenous Fluctuations in Two-Sector Growth Models with Externalities," G.R.E.Q.A.M. 96a04, Universite Aix-Marseille III.
- Benhabib, Jess & Nishimura, Kazuo, 1979. "The hopf bifurcation and the existence and stability of closed orbits in multisector models of optimal economic growth," Journal of Economic Theory, Elsevier, vol. 21(3), pages 421-444, December.
- Benhabib, J. & Meng, Q. & Nishimura, K., 1999.
"Indeterminacy Under Constant Returns to Scale in Multisector Economies,"
99-17, C.V. Starr Center for Applied Economics, New York University.
- Jess Benhabib & Qinglai Meng & Kazuo Nishimura, 2000. "Indeterminacy under Constant Returns to Scale in Multisector Economies," Econometrica, Econometric Society, vol. 68(6), pages 1541-1548, November.
- Kazuo Nishimura & Alain Venditti, 2006. "Indeterminacy in discrete-time infinite-horizon models," Working Papers halshs-00410763, HAL.
- Nishimura, K. & Venditti, A., 2000. "Dynamical Systems Arising from Infinite Time Horizon Optimization Models," G.R.E.Q.A.M. 00c03, Universite Aix-Marseille III.
- Nishimura, Kazuo, 1985.
"Competitive equilibrium cycles,"
Journal of Economic Theory,
Elsevier, vol. 35(2), pages 284-306, August.
When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:44:y:2008:i:3-4:p:277-315. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.