Nonuniqueness in Rational Expectations Models: An Interpretation

This paper reconsiders McCallum's minimal-state-variable technique for selecting a single, bubble-free solution to a rational expectations model. I argue this technique bears a strong structural similarity to the conventional stability conditions, and when these approaches fail to yield a unique bounded solution, so does McCallum's.

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Year of publication:	1985
Authors:	Backus, David
Institutions:	Economics Department, Queen's University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	11 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005787675