The E-Correspondence Principle

Show full item record

Title: The E-Correspondence Principle
Author: Evans, George W., 1949-; Honkapohja, Seppo, 1951-
Abstract: We introduce the E-correspondence principle for stochastic dynamic expectations models as a tool for comparative dynamics analysis. The principle is applicable to equilibria that are stable under least squares and closely related learning rules. With this technique it is possible to study, without explicit solving for the equilibrium, how properties of the equilibrium are affected by changes in the structural parameters of the model. Even if qualitative comparative dynamics results are not obtainable, a quantitative version of the principle can be applied.
Date: 2003-06-23

Files in this item

Files Size Format View
UO-2003-27_Evans_E-Correspondence.pdf 238.5Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record