Multiple equilibria in the Aghion-Howitt model

Jess Benhabib

doi:10.1016/j.rie.2013.10.002

Multiple equilibria in the Aghion-Howitt model

Jess Benhabib

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	112-116
Number of pages	5
Journal	Research in Economics
Volume	68
Issue number	2
DOIs	https://doi.org/10.1016/j.rie.2013.10.002
State	Published - Jun 2014

Keywords

Endogenous growth
Indeterminacy
Quality ladder

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/j.rie.2013.10.002

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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.",

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Multiple equilibria in the Aghion-Howitt model

Abstract

Keywords

ASJC Scopus subject areas

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