On local indeterminacy and endogenous cycles in Ramsey models with heterogeneous households

Journal article: It is well-known that endogenous cycles can occur in Ramsey models with heterogeneous households and borrowing constraints. In this note, we address the issue of robustness in the more general case of endogenous labor supply and we explain the occurrence of local indeterminacy under progressive taxation.

Author(s)

Stefano Bosi, Thomas Seegmuller

Journal
  • Portuguese Economic Journal
Date of publication
  • 2009
Pages
  • 53-58
Version
  • 1
Volume
  • 8