منابع مشابه
Unemployment and indeterminacy
Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be indeterminate even without externalities or increasing returns, which makes a sharp contrast to the recent literature on indeterminacy. Our result is based on the ...
متن کاملIndeterminacy and costly unemployment
In this paper, we extend the finance constrained economy proposed by Woodford (1986) to incorporate unions, imperfectly insured unemployment and transfers. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the deterministic steady state. By contrast to most related models in the literature, we find that sunspots and d...
متن کاملIndeterminacy, Bifurcations, and Unemployment Fluctuations
We incorporate imperfectly insured unemployment in the finance constrained economy proposed by Woodford (1986), by introducing unions and unemployment benefits financed by labor taxation. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the steady state. In fact, in contrast to related models in the literature, we fi...
متن کاملIntersectoral Externalities and Indeterminacy
We consider a two-sector economy with positive intersectoral external effects and nonincreasing social returns. We show that if the discount factor r is close to 1 then local indeterminacy may be obtained with mild market imperfections. Moreover, with additional conditions, when r is made smaller the steady state becomes totally unstable and quasi-periodic cycles, along which equilibrium paths ...
متن کاملRationality and Indeterminacy
Much of the history of game theory has been dominated by the problem of indeterminacy. The very search for better versions of rationality, as well as the long list of attempts to refine Nash equilibrium, can be seen as answers to the indeterminacy that has accompanied game theory through its history. More recently, the experimental approach to game theory has attempted a more radical solution: ...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2006
ISSN: 0022-0531
DOI: 10.1016/j.jet.2004.08.003