Since the late 70s and the first two oil shocks, many economic studies have explored the link between changes in oil prices and global economic growth. However, the causes of the variations in oil price have changed over this period. Thus the impact of these shocks on the economy may also...

In this paper, we solve a large class of non-linear rational expectations models with regime switching, i.e. recurring shifts in parameters. The regime-switches and the shocks may follow state-dependent probability distributions. Using a perturbation approach, we first prove that sufficient...