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

Stefano Bosi (1) , Thomas Seegmuller (2, 3)

1 EPEE - Centre d'Etudes des Politiques Economiques
2 CES - Centre d'économie de la Sorbonne
3 PSE - Paris School of Economics

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.

Domaines: Economies et finances

Stefano Bosi, Thomas Seegmuller. On local indeterminacy and endogenous cycles in Ramsey models with heterogeneous households. Portuguese Economic Journal, 2009, 8, pp.53-58. ⟨10.1007/s10258-009-0039-7⟩. ⟨hal-02878040⟩