Uniqueness and indeterminacy: On the dynamics of endogenous growth

Jess Benhabib, Roberto Perli

    Research output: Contribution to journalArticle

    Abstract

    In this paper we study the dynamics of endogenous growth, both in the model of Lucas and in a generalization that incorporates a labor-leisure choice. We characterize the regions of the parameter space that give rise to unique equilibria as well as the regions that yield a continuum of equilibria with positive growth rates. We find that such multiple equilibria exist for empirically very plausible parameters, in particular when the Lucas model is modified to incorporate endogenous labor. Journal of Economic Literature Numbers: E00, E3, O40.

    Original languageEnglish (US)
    Pages (from-to)113-142
    Number of pages30
    JournalJournal of Economic Theory
    Volume63
    Issue number1
    DOIs
    StatePublished - Jun 1994

    ASJC Scopus subject areas

    • Economics and Econometrics

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