Solving Rational Expectations Models with Informational Subperiods: A Comment

Frank Hespeler () and Marco Sorge

Computational Economics, 2019, vol. 53, issue 4, No 18, 1649-1654

Abstract: Abstract Kormilitsina (Comput Econ 41(4): 525–555, 2013) develops a perturbation-based algorithm to solve up to the second order of approximation rational expectations models with informational subperiods (timing restrictions). It is there claimed that the restricted framework inherits equilibrium (non)uniqueness properties from its unrestricted counterpart. This comment provides an example where timing restrictions cause non-existence of dynamically stable equilibria, even though the model’s unrestricted counterpart exhibits saddle-path stability. Implications for the execution of Kormilitsina’s algorithm are discussed.

Keywords: Rational expectations models; Timing restrictions (search for similar items in EconPapers)
JEL-codes: C62 C63 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10614-018-9829-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:compec:v:53:y:2019:i:4:d:10.1007_s10614-018-9829-2

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

DOI: 10.1007/s10614-018-9829-2

Access Statistics for this article

Computational Economics is currently edited by Hans Amman

More articles in Computational Economics from Springer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().