Tracing Externalities as Sources of Indeterminacy

  title={Tracing Externalities as Sources of Indeterminacy},
  author={Sharon E. Harrison},
This paper o®ers further inquiry into sources of indeterminacy in general equilibrium. We take a more agnostic approach than previous work as we allow for a more general interpretation of externalities. In particular, we identify the origin of scale economies as being from either labor or capital. We ̄nd that in the one-sector model it is the externalities associated with labor that generate the result. However, in the two-sector model, indeterminacy can be ultimately traced back to the… CONTINUE READING


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