Another weakness of "determinacy" as a selection criterion for rational expectations models

This paper argues against determinacy as a guide to interpret rational expectations solutions, using an example in which a determinate solution exists but differs sharply in dynamic behavior from that implied by the model considered on a sector-by-sector basis.

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Year of publication:	2009
Authors:	Cho, Seonghoon ; McCallum, Bennett T.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 104.2009, 1, p. 17-19
Publisher:	Elsevier
Subject:	Determinacy Stability Rational expectations

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005023474