TY - JOUR
T1 - Uniqueness and indeterminacy
T2 - On the dynamics of endogenous growth
AU - Benhabib, Jess
AU - Perli, Roberto
PY - 1994/6
Y1 - 1994/6
N2 - 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.
AB - 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.
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U2 - 10.1006/jeth.1994.1035
DO - 10.1006/jeth.1994.1035
M3 - Article
AN - SCOPUS:0000935231
SN - 0022-0531
VL - 63
SP - 113
EP - 142
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -