Existence of Adaptively Stable Sunspot Equilibria Near an Indeterminate Steady State

George Evans and Seppo Honkapohja

No 478, CESifo Working Paper Series from CESifo

Abstract: We examine the nonlinear model Xt = Et F(xt+1) . Markov SSEs exist near an indeterminate steady state, X = F(X), provided F´(X)> 1. We show that there exist Markov SSEs that are E-stable, and therefore locally stable under adaptive learning, if F´(X)

Keywords: Indeterminacy; learnability; expectational stability; endogenous fluctuations (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Existence of adaptively stable sunspot equilibria near an indeterminate steady state (2003)
Working Paper: Existence of Adaptively Stable Sunspot Equilibria near an Indeterminate Steady State (2002)
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