Global Stability in Spite of "Local Instability" with Learning in General Equilibrium Models: A Generalization

Shurojit Chatterji and Subir Chattopadhyay

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: In this paper we identify a simple property of nonlinear temporary equilibrium map (TEM) that guarantees that all trajectories, along which the dynamics of the state variable remain bounded, converge to the steady state-in particular, the locally divergent trajactories also are driven back to the steady state. This property if used to show that one may get globally stable learning dynamics in spite of "locally unstable"behaviour in realistic economic models.

Keywords: LINEAR; MODELS (search for similar items in EconPapers)
JEL-codes: C10 C11 (search for similar items in EconPapers)
Pages: 21 pages
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:aub:autbar:329.96

Access Statistics for this paper

More papers in UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) Contact information at EDIRC.
Bibliographic data for series maintained by Xavier Vila ().