UCLouvain Economics Seminar: Alain Venditti
30 November 2017
12:45 PM
DOYE 22
On Sunspot Fluctuations in Infinite-horizon Models: A General Analysis
Alain Venditti, AMSE
In this paper we study the existence of local indeterminacy and sunspot fluctuations in general infinite-horizon models with external effects leading to increasing returns to scale (IRS). Our aim is to study whether expectation-driven business cycles are structurally compatible with empirically realistic values for the main structural parameters, in particular those characterizing the utility and production functions.