Existence of Adaptively Stable Sunspot Equilibria near an Indeterminate Steady State
| dc.contributor.author | Evans, George W., 1949- | |
| dc.contributor.author | Honkapohja, Seppo, 1951- | |
| dc.date.accessioned | 2003-08-14T21:59:52Z | |
| dc.date.available | 2003-08-14T21:59:52Z | |
| dc.date.issued | 2002-04-06 | |
| dc.description.abstract | We examine the nonlinear model x_t = E_t F(x_(t+1)). Markov SSEs exist near an indeterminate steady state, hat(x)=F(hat(x)), provided |F'(hat(x)| > 1. Despite the importance of indeterminancy in macroeconomics, earlier results have not provided conditions for the existance of adaptively stable SSEs near an indeterminate steady state. We show that there exists Markov SSEs near hat(x) that are E-stable, and therefore locally stable under adaptive learning, if F'(hat(x)) < -1. | en |
| dc.format.extent | 237568 bytes | |
| dc.format.mimetype | application/pdf | |
| dc.identifier.uri | https://hdl.handle.net/1794/93 | |
| dc.language.iso | en_US | |
| dc.publisher | University of Oregon, Dept. of Economics | en |
| dc.relation.ispartofseries | University of Oregon Economics Department Working Papers;2002-9 | |
| dc.subject | Endogenous fluctuations | en |
| dc.subject | Expectational stability | en |
| dc.subject | Learnability | en |
| dc.subject | Indeterminacy | en |
| dc.title | Existence of Adaptively Stable Sunspot Equilibria near an Indeterminate Steady State | en |
| dc.type | Working Paper | en |