Several recent papers have argued that it is more likely for indeterminacy to occur under a high intertemporal elasticity of substitution in consumption. This paper claims that this property does not generally hold in neoclassical growth models. We illustrate this claim by combining the features of those recent papers.
- Intertemporal elasticity of substitution in consumption
- Utility curvature
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management