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

Jean-Bernard Chatelain and Kirsten Ralf

MPRA Paper from University Library of Munich, Germany

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; Riccati equation; sunspots. (search for similar items in EconPapers)
JEL-codes: C60 C61 C62 E13 E60 (search for similar items in EconPapers)
Date: 2014-07-23
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/57506/1/MPRA_paper_57506.pdf original version (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:pra:mprapa:57506

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().