Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174119 
Year of Publication: 
2016
Series/Report no.: 
Cardiff Economics Working Papers No. E2016/6
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
We present conditions for the emergence of singularities in DGE models. We distinguish between slow-fast and impasse singularity types, review geometrical methods to deal with both types of singularity and apply them to DGE dynamics. We find that impasse singularities can generate new types of DGE dynamics, in particular temporary determinacy/indeterminacy. We illustrate the different nature of the two types of singularities and apply our results to two simple models: the Benhabib and Farmer (1994) model and one with a cyclical fiscal policy rule.
Subjects: 
slow-fast singularities
impasse singularities
macroeconomic dynamics
temporary indeterminacy
JEL: 
C62
D43
E32
Document Type: 
Working Paper

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