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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
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    4. 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.
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    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. Kazuo Mino, 2017. "Growth and Business Cycles with Equilibrium Indeterminacy," Advances in Japanese Business and Economics, Springer, number 978-4-431-55609-1, June.
    8. Casey B. Mulligan, 1998. "Microfoundations and macro implications of indivisible labor," Discussion Paper / Institute for Empirical Macroeconomics 126, Federal Reserve Bank of Minneapolis.
    9. 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.
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