학술저널
Indeterminacy under Social Constant Returns and Costs of Adjusting Capital
- 한국계량경제학회
- JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS
- Vol.23 No.3
-
2012.09187 - 200 (14 pages)
- 36
It has been shown that, in a small open economy with traded and nontraded goods, indeterminacy occurs under constant returns to scale for the social technology with an arbitrarily small degree of externalities. This paper claims that costs of adjusting capital increase the required degree of externalities for indeterminacy to arise. Under empirically plausible levels of adjustment costs and externalities, indeterminacy does not arise in a model with social constant returns.
Abstract
1. INTRODUCTION
2. THE ECONOMY
3. INDETERMINACY UNDER CONSTANT RETURNS
4. CONCLUSION
REFERENCES
APPENDIX
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