The E-correspondence Principle

George William Evans () and Seppo Mikko Sakari Honkapohja ()

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: We introduce the E-correspondence principle for stochastic dynamic expectations models as a tool for comparative dynamics analysis. The principle is applicable to equilibria that are stable under least squares and closely related learning rules. With this technique it is possible to study, without explicit solving for the equilibrium, how properties of the equilibrium are affected by changes in the structural parameters of the model. Even if qualitative comparative dynamics results are not obtainable, a quantitative version of the principle can be applied.

New Economics Papers: this item is included in nep-dge
Date: 2003-06-01
View list of references View citations in EconPapers

Downloads: (external link)
http://economics.uor ... E-Correspondence.pdf (application/pdf)

Related works:
Working Paper: The E-Correspondence Principle (2004)
Journal Article: The E-Correspondence Principle (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in University of Oregon Economics Department Working Papers from University of Oregon Economics Department
Contact information at EDIRC.
Series data maintained by Bill Harbaugh ().