Representations and Sunspot Stability
George Evans () and
Bruce McGough ()
University of Oregon Economics Department Working Papers from University of Oregon Economics Department
By endowing his agents with simple forecasting models, or representations, Woodford (1990) found that finite state Markov sunspot equilibria may be stable under learning. We show that common factor representations generalize to all sunspot equilibria the representations used by Woodford (1990). We find that if finite state Markov sunspots are stable under learning then all sunspots are stable under learning, provided common factor representations are used.
Keywords: Indeterminacy; Sunspot Equilibria; E-stability (search for similar items in EconPapers)
JEL-codes: E52 E32 D83 D84 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba and nep-mac
Date: 2007-01-01, Revised 2008-08-28
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://economics.uoregon.edu/papers/UO-2007-1_Evans_Representations.pdf [301 Moved Permanently]--> https://economics.uoregon.edu/papers/UO-2007-1_Evans_Representations.pdf)
Journal Article: REPRESENTATIONS AND SUNSPOT STABILITY (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ore:uoecwp:2007-1
Access Statistics for this paper
More papers in University of Oregon Economics Department Working Papers from University of Oregon Economics Department Contact information at EDIRC.
Series data maintained by Bill Harbaugh ().