01744cas a2200253 a 4500 AALejournalIMF000607 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451848267 1018-5941 BD-DhAAL BD-DhAAL Carranza, Luis. Multiple Equilibrium, Variability, and the Development Process / Luis Carranza, Jose Galdon-Sanchez. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Per capita output is more volatile in middle-income economies than in both low-income and high-income economies. We examine this pattern in a two-period overlapping generations model with two productive sectors (a developed sector and a subsistence sector) and a credit sector. In the early and mature stages of development, there is a unique equilibrium, because labor and credit markets are cleared by a unique set of prices. In the middle stages of development, however, the model shows that markets can be cleared by a multiple set of prices. This multiplicity of equilibria arises as productive externalities are reflected in credit markets. Mode of access: Internet Galdon-Sanchez, Jose. IMF Working Papers; Working Paper ; No. 1998/062 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/062/001.1998.issue-062-en.xml IMF e-Library