A finite set of equilibria for the indeterminacy of linear rational expectations models

Jean-Bernard Chatelain and Kirsten Ralf

This paper demonstrates the existence of a finite set of equilibria in the case of the indeterminacy of linear rational expectations models. The number of equilibria corresponds to the number of ways to select n eigenvectors among a larger set of eigenvectors related to stable eigenvalues. A finite set of equilibria is a substitute to continuous (uncountable) sets of sunspots equilibria, when the number of independent eigenvectors for each stable eigenvalue is equal to one.

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Year of publication:	July 25, 2014
Authors:	Chatelain, Jean-Bernard ; Ralf, Kirsten
Publisher:	[Kiel : ZBW
Subject:	linear rational expectations models \| sunspots \| indeterminacy \| multiple equilibria \| matrix Riccati equation \| Rationale Erwartung \| Rational expectations \| Sunspots \| Gleichgewichtstheorie \| Equilibrium theory \| Gleichgewichtsmodell \| Equilibrium model

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Extent:	1 Online-Ressource (circa 8 Seiten)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/99752 [Handle]
Classification:	C60 - Mathematical Methods and Programming. General ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; C62 - Existence and Stability Conditions of Equilibrium ; E13 - Neoclassical ; E60 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011525764