Indeterminacy in a small open economy with endogenous labor supply
Meng, Q. & Velasco, A.
(2003).
Indeterminacy in a small open economy with endogenous labor supply.
Economic Theory,
22(3), 661-669.
https://doi.org/10.1007/s00199-002-0308-5
(2003).
Indeterminacy in a small open economy with endogenous labor supply.
Economic Theory,
22(3), 661-669.
https://doi.org/10.1007/s00199-002-0308-5
We establish conditions under which indeterminacy can occur in a small open economy business cycle model with endogenous labor supply. Indeterminacy requires small externalities in technologies with social constant returns to scale, independently of the intertemporal elasticities in both consumption and labor.