Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/61718
Authors: 
Weder, Mark
Year of Publication: 
1999
Series/Report no.: 
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 1999,30
Abstract: 
This paper constructs a small open economy version of the two sector Benhabib-Farmer (1996) indeterminacy model. It can be shown that sunspot equilibria arise at significantly lower magnitude of increasing returns to scale than in the original dosed economy model. Furthermore, if a mix of externalities across sectors is admitted, indeterminacy can be obtained even with decreasing aggregate returns to scale.
JEL: 
F4
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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