Indeterminacy, capital maintenance expenditures and the business cycle

详细信息    查看全文

• 作者：Dou Jiang ^{dou.jiang@uqconnect.edu.au}Author Vitae
• 关键词：E32
• 刊名：Economic Modelling
• 出版年：2017
• 出版时间：February 2017
• 年：2017
• 卷：61
• 期：Complete
• 页码：432-438
• 全文大小：342 K
• 卷排序：61

文摘

This paper examines how maintenance expenditures affect the occurrence of indeterminacy in a two-sector model economy. The main finding is that the endogenous maintenance expenditures reduce the requirement of the degree of increasing returns to scale to generate sunspot equilibria. The paper also explore a two-sector model in which capital utilization is constant over time. The model resolves the countercyclical consumption puzzle.