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dc.contributor.authorLloyd-Braga, Teresaen_US
dc.contributor.authorModesto, Leonoren_US
dc.contributor.authorSeegmuller, Thomasen_US
dc.date.accessioned2011-07-29en_US
dc.date.accessioned2011-11-23T11:32:19Z-
dc.date.available2011-11-23T11:32:19Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201104134405en_US
dc.identifier.urihttp://hdl.handle.net/10419/51659-
dc.description.abstractWe provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations. Most of the specific market imperfections considered in the related literature are particular cases of our framework. Comparing them we obtain several equivalence results in terms of local dynamic properties, highlighting the main channels and classes of distortions responsible for indeterminacy. Our methodology consists in introducing general specifications for the elasticities of the crucial functions defining the aggregate equilibrium dynamics of the model. This allows us to study how market distortions influence the range of values for the elasticity of inputs substitution under which local indeterminacy and bifurcations occur. Applying this methodology to the Woodford (1986) framework we find that distortions in the capital market, per se, do not play a major role. We further show that, for empirically plausible values of elasticity of substitution between inputs, indeterminacy requires a minimal degree of distortions. This degree seems to be high under output market distortions, while with labor market distortions the required degree is empirically plausible.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5603en_US
dc.subject.jelC62en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordindeterminacyen_US
dc.subject.keywordendogenous fluctuationsen_US
dc.subject.keywordmarket imperfectionsen_US
dc.subject.keywordexternalitiesen_US
dc.subject.keywordimperfect competitionen_US
dc.subject.keywordtaxationen_US
dc.subject.stwGleichgewichten_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwUnvollkommener Wettbewerben_US
dc.subject.stwChaostheorieen_US
dc.subject.stwExterner Effekten_US
dc.subject.stwSteueren_US
dc.subject.stwFinanzmarkten_US
dc.subject.stwArbeitsmarkten_US
dc.subject.stwTheorieen_US
dc.titleMarket distortions and local indeterminacy: A general approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn665237758en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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