Coordination on Saddle Path Solutions: the Eductive Viewpoint. 1- Linear Univariate Models.

We investigate local strong rationality (LSR) in a one step forward looking univariate model with memory one. Eductive arguments are used to determine when common knowledge (CK) that the solution is near some perfect foresight path is sufficient to trigger complete coordination on that path (i.e. the path is LSR).

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Year of publication:	1999
Authors:	Evans, G.E. ; Guesnerie, R.
Institutions:	Laval - Laboratoire Econometrie
Subject:	ECONOMIC MODELS \| ECONOMETRICS \| MATHEMATICAL ANALYSIS

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Series:	Laval - Laboratoire Econometrie.
Type of publication:	Book / Working Paper
Notes:	25 pages
Classification:	C00 - Mathematical and Quantitative Methods. General ; C50 - Econometric Modeling. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005625791