Unique equilibrium in a dynamic model of crises with frictions

This paper studies a dynamic model of crises with timing frictions that combines the main aspects of Morris and Shin (1998) and Frankel and Pauzner (2000). The usual arguments for existence and uniqueness of equilibrium cannot be applied. It is shown that the model has a unique equilibrium within the class of threshold equilibria.

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Year of publication:	2005-08
Authors:	Guimaraes, Bernardo
Institutions:	London School of Economics (LSE)
Subject:	Unique equilibrium \| crises \| dynamics \| strategic complementarities

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Extent:	application/pdf
Series:	LSE Research Online Documents on Economics.
Type of publication:	Book / Working Paper
Notes:	17 pages
Classification:	D8 - Information and Uncertainty ; F3 - International Finance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010928606