Indeterminacy and sunspots with constant returns

Jess Benhabib, Kazuo Nishimura

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Recently there has been a renewed interest in the possibility of indeterminacy and sunspots, or alternatively put, in the existence of a continuum of equilibria that arises in dynamic economies with some market imperfections. Much of the research in this area has been concerned with the empirical plausibility of indeterminacy in markets with external effects or with monopolistic competition and which exhibit some degree of increasing returns. 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.

    Original languageEnglish (US)
    Title of host publicationNonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy
    PublisherSpringer Berlin Heidelberg
    Pages311-346
    Number of pages36
    ISBN (Electronic)9783642223976
    ISBN (Print)9783642223969
    DOIs
    StatePublished - Jan 1 2012

    Fingerprint

    Sunspots
    Indeterminacy
    Increasing returns
    External effects
    Two-sector model
    Farmers
    Market imperfections
    Monopolistic competition
    Markups

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)
    • Business, Management and Accounting(all)

    Cite this

    Benhabib, J., & Nishimura, K. (2012). Indeterminacy and sunspots with constant returns. In Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy (pp. 311-346). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-22397-6_13

    Indeterminacy and sunspots with constant returns. / Benhabib, Jess; Nishimura, Kazuo.

    Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy. Springer Berlin Heidelberg, 2012. p. 311-346.

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Benhabib, J & Nishimura, K 2012, Indeterminacy and sunspots with constant returns. in Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy. Springer Berlin Heidelberg, pp. 311-346. https://doi.org/10.1007/978-3-642-22397-6_13
    Benhabib J, Nishimura K. Indeterminacy and sunspots with constant returns. In Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy. Springer Berlin Heidelberg. 2012. p. 311-346 https://doi.org/10.1007/978-3-642-22397-6_13
    Benhabib, Jess ; Nishimura, Kazuo. / Indeterminacy and sunspots with constant returns. Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and Indeterminacy. Springer Berlin Heidelberg, 2012. pp. 311-346
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