Unique equilibrium in a dynamic model of crises with frictions

Bernardo Guimaraes

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper studies a dynamic model of crises with timing frictions that combines the main aspects of Morris and Shin (1998) and Frankel and Pauzner (2000). The usual arguments for existence and uniqueness of equilibrium cannot be applied. It is shown that the model has a unique equilibrium within the class of threshold equilibria.

Keywords: Unique equilibrium; crises; dynamics; strategic complementarities (search for similar items in EconPapers)
JEL-codes: D8 F3 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2005-08
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:4907

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