A finite set of equilibria for the indeterminacy of linear rational expectations models

Jean-Bernard Chatelain and Kirsten Ralf

Working Papers from HAL

Abstract: This paper demonstates the existence of a finite set of equilibria in the case of the indeterminacy of linear rational expectations models. The number of equilibria corresponds to the number of ways to select n eigenvectors among a larger set of eigenvectors related to stable eigenvalues. A finite set of equilibria is a substitute to continuous (uncountable) sets of sunspots equilibria, when the number of independent eigenvectors for each stable eigenvalue is equal to one.

Keywords: Linear rational expectations models; indeterminacy; multiple equilibria; matrix Riccati equation; sunspots (search for similar items in EconPapers)
Date: 2014-07-23
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01053484v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://shs.hal.science/halshs-01053484v2/document (application/pdf)

Related works:
Working Paper: A finite set of equilibria for the indeterminacy of linear rational expectations models (2014)
Working Paper: A finite set of equilibria for the indeterminacy of linear rational expectations models (2014)
Working Paper: A finite set of equilibria for the indeterminacy of linear rational expectations models (2014)
Working Paper: A finite set of equilibria for the indeterminacy of linear rational expectations models (2014)
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:hal:wpaper:halshs-01053484

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().