Chatelain, Jean-Bernard; Ralf, Kirsten - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2014
This paper demonstates the existence of a finite set of equilibria in the case of the indeterminacy of linear rational expectations models. The number of equilibria corresponds to the number of ways to select n eigenvectors among a larger set of eigenvectors related to stable eigenvalues. A...