Weder, M.2008-03-242008-03-242004Portuguese Economic Journal, 2004; 3(1):1-131617-982X1617-9838http://hdl.handle.net/2440/41236© SpringerThis paper investigates general equilibrium effects of conspicuous leisure. It finds that leisure externalities reduce the degree of other market imperfections needed to generate indeterminacy or sunspot equilibria - endogneous cycles become empirically more plausible. Sunspot equilibria are possible with a downward-sloping labor demand schedule. The economic reasoning behind the result is that with conspicuous-externalities, labor is drawn more easily in and out of leisure to help fulfill agents expectations.enConspicuous leisureBusiness cyclesIndeterminacyIrregular economiesSunspotsJournal article00200752842008031714175610.1007/s10258-004-0026-y45828