| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062479 | Economics Letters | 2007 | 8 Pages |
Abstract
Are consumption externalities sources of indeterminacy? The answer is negative in conventional wisdom. This paper shows consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question interpretation of simple estimation obtained by pooling data, among others.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Been-Lon Chen, Mei Hsu,