It is by now well known that, in the presence of even mild imperfections, the standard infinite horizon model of the macroeconomy often supports an indeterminate set of equilibria. This paper shows that the assumption of maximizing individuals, if used consistently, provides an endogenous equilibrium selection mechanism.

Growth, externalities, and indeterminate equilibria

FERRAGUTO, GIUSEPPE
2007

Abstract

It is by now well known that, in the presence of even mild imperfections, the standard infinite horizon model of the macroeconomy often supports an indeterminate set of equilibria. This paper shows that the assumption of maximizing individuals, if used consistently, provides an endogenous equilibrium selection mechanism.
2007
Ferraguto, Giuseppe
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3718338
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact