Medio, Alfredo; Raines, Brian - In: Macroeconomic Dynamics 16 (2012) 04, pp. 518-555
We discuss the problem known in economics as backward dynamics occurring in models of perfect foresight, intertemporal equilibrium described mathematically by <italic>implicit</italic> difference equations. In a previously published paper [<italic>Journal of Economic Dynamics and Control</italic> 31 (2007), 1633–1671], we...