Admiration is a source of indeterminacy

Been Lon Chen; Mei Hsu

doi:10.1016/j.econlet.2006.09.020

Admiration is a source of indeterminacy

Been Lon Chen^*, Mei Hsu

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

24 Citations (Scopus)

Abstract

Are consumption externalities sources of indeterminacy? The answer is negative in conventional wisdom. This paper shows consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question interpretation of simple estimation obtained by pooling data, among others.

Original language	English
Pages (from-to)	96-103
Number of pages	8
Journal	Economics Letters
Volume	95
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2006.09.020
Publication status	Published - 2007 Apr
Externally published	Yes

Keywords

Consumption externalities
Indeterminacy
Neoclassical growth model

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2006.09.020

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title = "Admiration is a source of indeterminacy",

abstract = "Are consumption externalities sources of indeterminacy? The answer is negative in conventional wisdom. This paper shows consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question interpretation of simple estimation obtained by pooling data, among others.",

keywords = "Consumption externalities, Indeterminacy, Neoclassical growth model",

author = "Chen, {Been Lon} and Mei Hsu",

note = "Funding Information: We are grateful to Nan-Kuang Chen, Hsiu-Yun Lee, Martine Richardson, Henry Wan, Jr. and Ping Wang, and conference participants in Academia Sinica and National Chia-Yi University (Taiwan) and University of International Business and Economics (China). Chen is grateful to the Taiwan National Science Council for financial supports (NSC 95-2415-H-001-010). ",

year = "2007",

month = apr,

doi = "10.1016/j.econlet.2006.09.020",

language = "English",

volume = "95",

pages = "96--103",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier",

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T1 - Admiration is a source of indeterminacy

AU - Chen, Been Lon

AU - Hsu, Mei

N1 - Funding Information: We are grateful to Nan-Kuang Chen, Hsiu-Yun Lee, Martine Richardson, Henry Wan, Jr. and Ping Wang, and conference participants in Academia Sinica and National Chia-Yi University (Taiwan) and University of International Business and Economics (China). Chen is grateful to the Taiwan National Science Council for financial supports (NSC 95-2415-H-001-010).

PY - 2007/4

Y1 - 2007/4

N2 - Are consumption externalities sources of indeterminacy? The answer is negative in conventional wisdom. This paper shows consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question interpretation of simple estimation obtained by pooling data, among others.

AB - Are consumption externalities sources of indeterminacy? The answer is negative in conventional wisdom. This paper shows consumption externalities establish local indeterminacy if the degree of decreasing impatience is sufficiently large. Dynamic models with indeterminacy are valuable as they tend to explain economic fluctuations without relying on exogenous shocks and question interpretation of simple estimation obtained by pooling data, among others.

KW - Consumption externalities

KW - Indeterminacy

KW - Neoclassical growth model

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DO - 10.1016/j.econlet.2006.09.020

M3 - Article

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SN - 0165-1765

VL - 95

SP - 96

EP - 103

JO - Economics Letters

JF - Economics Letters

IS - 1

ER -

Admiration is a source of indeterminacy

Abstract

Keywords

ASJC Scopus subject areas

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