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

This paper demonstates 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:	2014-07-23
Authors:	Jean-Bernard, Chatelain ; Kirsten, Ralf

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Jean-Bernard, Chatelain and Kirsten, Ralf (2014): A finite set of equilibria for the indeterminacy of linear rational expectations models.
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:	BASE

Persistent link: https://www.econbiz.de/10015243460