Indeterminacy Under Constant Returns to Scale in Multisector Economies

  • Jess BenhabibEmail author
  • Qinglai Meng
  • Kazuo Nishimura


Recently there has been a renewed interest in indeterminacy, or alternatively put, in the existence of a continuum of equilibria in dynamic economies that exhibit some market imperfections. One of the primary concerns of this literature has been the empirical plausibility of indeterminacy, which arises in markets with external effects or with monopolistic competition, often coupled with some degree 10 of increasing returns.


Constant Return Negative Real Part Negative Root Endogenous Growth Model Balance Growth Path 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Basu, S. and J. G. Fernald (1997), “Returns to Scale in US Production: Estimates and Implications,” Journal of Political Economy, 105, 249–283.CrossRefGoogle Scholar
  2. Benhabib, J. and R. Farmer (1994), “Indeterminacy and Increasing Returns,” Journal of Economic Theory, 63, 19–41.CrossRefGoogle Scholar
  3. Benhabib, J. and R. Farmer (1996), “Indeterminacy and Sector Specific Externalities,”Journal of Monetary Economics, 37, 397–419.CrossRefGoogle Scholar
  4. Benhabib, J. and K. Nishimura (1998), “Indeterminacy and Sunspots with Constant Returns,”Journal of Economic Theory, 81, 58–96.CrossRefGoogle Scholar
  5. Benhabib, J. and R. Perli (1994), “Uniqueness and Indeterminacy: Transitional Dynamics in a Model of Endogenous Growth,” Journal of Economic Theory, 63, 113–142.CrossRefGoogle Scholar
  6. Benhabib, J., Perli, R. and D. Xie (1994), “Monopolistic Competition, Indeterminacy and Growth,” Ricerche Economiche, 48, 279–298.CrossRefGoogle Scholar
  7. Boldrin, M. and A. Rustichini (1994), “Indeterminacy of Equilibria in Models with Infinitely-lived Agents and External Effects,” Econometrica, 62, 323–342.CrossRefGoogle Scholar
  8. Bond, E. W., Wang, P. and C. K. Yip (1996), “A General Two-Sector Model of Endogenous Growth with Human and Physical Capital: Balanced Growth and Transitional Dynamics,” Journal of Economic Theory, 68, 149–173.CrossRefGoogle Scholar
  9. Hall, R. E. (1990), Invariance Properties of Solow’s Productivity Residual,inGrowth, Productivity, Unemployment,ed. by Diamond, P., Cambridge: MIT Press, 71–112.Google Scholar
  10. Mulligan, C. B. and X. Sala-i-Martin (1993), “Transitional Dynamics in Two–Sector Models of Endogenous Growth,” Quarterly Journal of Economics, 108, 739–773.CrossRefGoogle Scholar
  11. Schmitt-Grohé, S. (1997), “Comparing Four Models of Aggregate Fluctuations Due to Self-Fulfilling Expectations,” Journal of Economic Theory, 72, 96–147.CrossRefGoogle Scholar
  12. Xie, D. (1994), “Divergence in Economic Performance: Transitional Dynamics with Multiple Equilibria,” Journal of Economic Theory, 63, 97–11.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Department of EconomicsNew York UniversityNew YorkUSA
  2. 2.Department of EconomicsOregon State UniversityCorvallisUSA
  3. 3.Institute of Economic ResearchKyoto UniversityKyotoJapan

Personalised recommendations