Multiple equilibria in the Aghion-Howitt model

Jess Benhabib

    Research output: Contribution to journalArticle

    Abstract

    We show that the simple Aghion-Howitt model exhibits oscillatory indeterminacy in the process of creative destruction as firms undertaking new research do not internalize their effect on existing firms. A simple calibration shows that indeterminacy occurs for quite plausible parametrizations of the share of the intermediate good.

    Original languageEnglish (US)
    Pages (from-to)112-116
    Number of pages5
    JournalResearch in Economics
    Volume68
    Issue number2
    DOIs
    StatePublished - 2014

    Fingerprint

    Indeterminacy
    Multiple equilibria
    Calibration
    New firms
    Intermediate goods
    Creative destruction

    Keywords

    • Endogenous growth
    • Indeterminacy
    • Quality ladder

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Multiple equilibria in the Aghion-Howitt model. / Benhabib, Jess.

    In: Research in Economics, Vol. 68, No. 2, 2014, p. 112-116.

    Research output: Contribution to journalArticle

    Benhabib, Jess. / Multiple equilibria in the Aghion-Howitt model. In: Research in Economics. 2014 ; Vol. 68, No. 2. pp. 112-116.
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