Can consumption spillovers be a source of equilibrium indeterminacy ?

@inproceedings{AlonsoCarrera2007CanCS,
  title={Can consumption spillovers be a source of equilibrium indeterminacy ?},
  author={Jaime Alonso-Carrera and Jordi Caballe and Xavier Raurich},
  year={2007}
}
  • Jaime Alonso-Carrera, Jordi Caballe, Xavier Raurich
  • Published 2007
In this paper, we show that consumption externalities are a source of equilibrium indeterminacy in a growth model with endogenous labor supply. In particular, when the marginal rate of substitution between own consumption and the others’ consumption is constant along the equilibrium path, the equilibrium does not exhibit indeterminacy. In contrast, when that marginal rate of substitution is not constant, the equilibrium may exhibit indeterminacy even if the elasticity of the labor demand is… CONTINUE READING

References

Publications referenced by this paper.
Showing 1-10 of 11 references

Jealousy and Equilibrium Overconsumption,

  • B. Dupor, W. F. Liu
  • American Economic Review
  • 2003
Highly Influential
4 Excerpts

Can Consumption Spillovers Be a Source of Equilibrium Indeterminacy?

  • J. Alonso-Carrera, J. Caballé
  • Raurich
  • 2007

Indeterminacy with small externalities: the role of non-separable preferences,

  • T. Loyd-Braga, C. Nourry, A. Venditti
  • forthcoming in International Journal of Economic…
  • 2006

Multiple BGPs in a Growth Model with Habit Persistence,

  • Chen, B-L
  • Journal of Money, Credit and Banking,
  • 2006

Welfare implications of the interaction between habits and consumption externalities,

  • J. Alonso-Carrera, J. Caballé
  • Raurich
  • 2006

Indeterminacy and Keeping up with the Joneses,

  • J. T. Guo
  • Journal of Quantitative Economics,
  • 1999
1 Excerpt

Methods of Macroeconomic Dynamics

  • S. Turnovsky
  • 1995

Similar Papers

Loading similar papers…