2024 Indeterminacy and increasing returns

Indeterminacy and increasing returns

Author: fhof

August undefined, 2024

Web1 nov. 2000 · The purpose of this paper is to characterize the possibility of indeterminacy in multisector growth models that exhibit constant marginal returns to scale at the social level, with empirically realistic small external effects. Our results demonstrate that indeterminacy does not require increasing returns to scale, large external effects, or close to linear … Webreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). …

INCREASING RETURNS AND THE DESIGN OF INTEREST RATE RULES

WebINCREASING RETURNS AND THE DESIGN OF INTEREST RATE RULES WEI XIAO State University of New York at Binghamton We introduce increasing returns to scale … WebWith very mild increasing returns supported by empirical research, the conventional wisdom regarding the design of interest rate rules can be overturned. In particular, the “Taylor … hymns for 2nd sunday of christmas

Increasing Returns - Santa Fe

Web1 feb. 2008 · With very mild increasing returns supported by empirical research, the conventional wisdom regarding the design of interest rate rules can be overturned. In particular, the Taylor principle... Web1 jul. 1998 · The current paper demonstrates that decreasing returns in the variety-level production technology, which leads to increasing marginal costs, similarly amplify business cycles. Product scope expansions reduce marginal costs and firms have an incentive to produce multiple products even if the variety effects are entirely absent. Web1 jun. 1994 · Indeterminacy and Increasing Returns. We investigate properties of the one-sector growth model with increasing returns under two organizational structures … hymns for 28th sunday in ordinary time year b

Indeterminacy and increasing returns — NYU Scholars

Increasing returns in matching and labour market dynamics

Web30 dec. 2024 · Second, following a fiscal expansion, increasing returns to specialization lead to a positive linkage between real wages and aggregate output, ... Increasing Returns to Variety and Local Indeterminacy”, Review of Economic Dynamics, Vol. 14, No. 2, pp. 384–388. Article Google Scholar Web13 feb. 2006 · This paper examines the long-run effects of capital income taxes, labor income taxes, and expenditure taxes in an R&D-based model of endogenous growth with endogenous labor supply. The main contribution of this paper is to investigate how tax effects on long-run growth are influenced by the emergence of indeterminate equilibria. … hymns for 2 thessalonians 2:1-5 13-17 hymns for 2 thessalonians 2:1-17

"Webbetween private and social returns is necessary for indeterminacy, this in no way requires decreasing marginal costs or increasing marginal returns in production. For reasons also given at the end of Sect.13.2, indeterminacy can arise in a constant returns two-sector economy only if the utility of consumption is close to linear. " - Indeterminacy and increasing returns

Indeterminacy and increasing returns

Web1 feb. 1991 · Note however that in their paper the necessary and sufficient condition for indeterminacy is related to the slopes of the labor supply and labor demand schedules, as in Benhabib and Farmer (1994 ... Web1 feb. 2014 · Specifically, the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy, and when the degree of …

Did you know?

Web22 aug. 2012 · Finally, our main conclusion shows that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns, but requires … WebFor example, Basu and Fernald (1994, 1997) conclude that the returns to scale is between 1.03 and 1.09. Laitner and Stolyarov (2004) use stock market data to estimate the returns to scale and obtain values between 1.09 and 1.11. In our model, the minimum level of increasing returns to generate indeterminacy is as low as 1.06.

WebWe investigate properties of the one-sector growth model with increasing returns under two organizational structures capable of reconciling the existence of aggregate increasing … Web1 feb. 2000 · This paper examines the stability of a small open economy under alternative income taxation rules. Using a one-sector real business cycle model with external increasing returns, we show that if the income tax schedule is linear, the small open economy will not generate equilibrium indeterminacy, but it exhibits a diverging …

Webreturns-to-scale in the matching function. However, it is well-known that indeterminacy has been often framed in the context of increasing returns (cf. Benhabib and Farmer 1994). In conﬁrmation of this, there is a work by Giammarioli (2003) that sets forth a dynamic search model developed in continuous time in which a representative agent Web1 jan. 2012 · One of the primary concerns of this literature has been the empirical plausibility of indeterminacy, which arises in markets with external effects or with monopolistic competition, often coupled...

WebIndeterminacy and Increasing Returns. Indeterminacy and Increasing Returns. Jess Benhabib. 1994, Journal of Economic Theory. See Full PDF Download PDF.

Web"Indeterminacy and Increasing Returns," Papers 165, Cambridge - Risk, Information & Quantity Signals. Jess Benhabib & Roger E.A. Farmer, 1992. " Indeterminacy and … hymns for 22nd sunday after pentecostWeb"Indeterminacy and Increasing Returns," UCLA Economics Working Papers 646, UCLA Department of Economics. Benhabib, Jess & Farmer, Roger E.A., 1991. " … hymns for 22nd sunday in ordinary time year cWeb22 aug. 2012 · Second, we prove that when labor is infinitely elastic, saddlepoint stability is obtained if the investment good sector has constant social returns, whereas local indeterminacy arises if the investment good sector has increasing social returns and the elasticity of intertemporal substitution in consumption admits intermediate values. hymns for 2 october 2022Web24 nov. 2011 · While the early results on indeterminacy relied on relatively large increasing returns and high markups, more recently Benhabib and Farmer (1996a) showed that indeterminacy can also occur in two-sector models with small sector-specific external effects and very mild increasing returns. Keywords. External Effect; Constant Return; … hymns for 2 timothy 4WebIndeterminacy and Increasing Returns My bibliography Save this paper Indeterminacy and Increasing Returns Author & abstract Download & other version 19 References 580 Citations Most related Related works & more Corrections Author Listed: Jess Benhabib (NYU) Roger E.A. Farmer (UCLA) Registered: Jess Benhabib Roger E. A. Farmer Abstract hymns for 3rd sunday after pentecostWebTools. In economics, the term sunspots (or sometimes "a sunspot") refers to an extrinsic random variable, that is, a random variable that does not affect economic fundamentals (such as endowments, preferences, or technology ). Sunspots can also refer to the related concept of extrinsic uncertainty, that is, economic uncertainty that does not ... hymns for 7th sunday in ordinary timeWeb1 feb. 2014 · It is shown that the existence of consumption externality reduces the upper and lower bounds of production externality for local indeterminacy; and when the degree of … hymns for 4th sunday in ordinary time