This paper proposes a testing strategy for the null hypothesis that a multivariate linear rational expectations (LRE) model has a unique stable solution (determinacy) against the alternative of multiple stable solutions (indeterminacy). Under a proper set of identification restrictions,...

The introduction in banks of a new anti-money laundering body implies a revision of the controls’ system by intermediaries. Like the compliance function, this body has a multifunctional vocation and requires strong organizational skills. The controls’ system must have a polycentric...

This paper proposes a testing strategy for the null hypothesis that a multivariate linear rational expectations (LRE) model has a unique stable solution (determinacy) against the alternative of multiple stable solutions (indeterminacy). Under a proper set of identification restrictions,...