Sunspots do matter: a simple disproof of Mas-Colell

Mas-Colell conjectured that, for economies admitting a unique deterministic equilibrium, sunspot equilibria that 'matter'' would not exist. I prove an abundance of such equilibria using simple linear algebra.

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Year of publication:	2008-07-03
Authors:	Huesch, Marco
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2008, 19, p. 1-20
Publisher:	AccessEcon
Subject:	Animal Spirits

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Extent:	application/pdf
Type of publication:	Article
Classification:	E0 - Macroeconomics and Monetary Economics. General ; E3 - Prices, Business Fluctuations, and Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629257