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The Appearance of Indeterminacy Paths-An Economy with the Balanced Budget Rule and without Depreciation

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  • Fujio Takata

    (Graduate School of Economics, Kobe University)

Abstract

This paper deals with multiple movement patterns in an economy with infinite capital duration. It demonstrates what conditions are required for indeterminacy. Moreover, itshows that the capital duration is unrelated with the movement patterns.

Suggested Citation

  • Fujio Takata, 2020. "The Appearance of Indeterminacy Paths-An Economy with the Balanced Budget Rule and without Depreciation," Discussion Papers 2001, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2001
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2020/2001.pdf
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    References listed on IDEAS

    as
    1. Fujio Takata, 2017. "Two Steady States and Two Movement Patterns under the Balanced Budget Rule - An Economy with Divisible Labor," Discussion Papers 1702, Graduate School of Economics, Kobe University.
    2. Kazuo Mino, 2017. "Growth and Business Cycles with Equilibrium Indeterminacy," Advances in Japanese Business and Economics, Springer, number 978-4-431-55609-1, February.
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    4. Kamihigashi, Takashi, 2002. "Externalities and nonlinear discounting: Indeterminacy," Journal of Economic Dynamics and Control, Elsevier, vol. 26(1), pages 141-169, January.
    5. Hansen, Gary D., 1985. "Indivisible labor and the business cycle," Journal of Monetary Economics, Elsevier, vol. 16(3), pages 309-327, November.
    6. Schmitt-Grohe, Stephanie & Uribe, Martin, 1997. "Balanced-Budget Rules, Distortionary Taxes, and Aggregate Instability," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 976-1000, October.
    7. Benhabib Jess & Farmer Roger E. A., 1994. "Indeterminacy and Increasing Returns," Journal of Economic Theory, Elsevier, vol. 63(1), pages 19-41, June.
    8. Wen, Yi, 2001. "Understanding self-fulfilling rational expectations equilibria in real business cycle models," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1221-1240, August.
    9. Rogerson, Richard, 1988. "Indivisible labor, lotteries and equilibrium," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 3-16, January.
    10. Orazio P. Attanasio, 2015. "Frank Ramsey's A Mathematical Theory of Saving," Economic Journal, Royal Economic Society, vol. 0(583), pages 269-294, March.
    Full references (including those not matched with items on IDEAS)

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