Sunspot Equilibria in Systems with Memory: an Introductory Presentation

Julio Dávila and Roger Guesnerie ()

DELTA Working Papers from DELTA (Ecole normale supérieure)

Abstract: We consider Rational Expectations Equilibria in infinite horizon models in which equilibrium to-day depends upon the past, yesterday, and the future, to-morrow. We focus attention on a category of "Sunspot Equilibria", (à la Davila) that have a finite support and trigger a quasi-cyclic behavior of the economy. Our presentation puts emphasis on intuition and connection with earlier literature in one step forward looking models.

Keywords: ECONOMIC MODELS; EXPECTATIONS; RATIONALITY (search for similar items in EconPapers)
JEL-codes: C50 D84 (search for similar items in EconPapers)
Pages: 20 pages
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:del:abcdef:1999-05

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