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VOL. 53 | 2009 Global externalities, endogenous growth and sunspot fluctuations
Kazuo Nishimura, Harutaka Takahashi, Alain Venditti

Editor(s) Saber Elaydi, Kazuo Nishimura, Mitsuhiro Shishikura, Nobuyuki Tose


We consider a two-sector economy with Cobb-Douglas technologies, labor-augmenting global external effects and increasing social returns. We prove the existence of a normalized balanced growth path and we give conditions for the occurrence of sunspot fluctuations that are compatible with both types of capital intensity configuration at the private level provided the elasticity of intertemporal substitution in consumption admits intermediary values. We finally show that the existence of period-two cycles requires the consumption good to be physical capital intensive at the private level.


Published: 1 January 2009
First available in Project Euclid: 28 November 2018

zbMATH: 1183.91110
MathSciNet: MR2582419

Digital Object Identifier: 10.2969/aspm/05310203

Primary: C62 , E32 , O41

Keywords: endogenous growth , Global externalities , increasing returns , indeterminacy , intertemporal substitution in consumption , period-two cycles , sunspot fluctuations

Rights: Copyright © 2009 Mathematical Society of Japan


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