Discretionary Policy and Multiple Equilibria in LQ RE Models

We study discretionary equilibria in dynamic linear-quadratic rational expectations models. In contrast to the assumptions that pervade this literature we show that these models do have multiple equilibria in some situations. We demonstrate the existence of multiple discretionary equilibria by example. We investigate general properties of discretionary equilibria.

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Year of publication:	2010
Authors:	Kirsanova, Tatiana ; Blake, Andrew P.
Institutions:	Society for Economic Dynamics - SED

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Extent:	application/pdf
Series:	2010 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2010 SED Meeting Papers Number 789
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011080710