dc.contributor.author |
Evans, George W., 1949- |
|
dc.contributor.author |
McGough, Bruce |
|
dc.date.accessioned |
2006-11-21T17:35:06Z |
|
dc.date.available |
2006-11-21T17:35:06Z |
|
dc.date.issued |
2006-10-09 |
|
dc.identifier.uri |
http://hdl.handle.net/1794/3632 |
|
dc.description |
45 p. Revision of: Stable noisy K-state Markov Sunspots. |
en |
dc.description.abstract |
We consider a linear univariate rational expectations model, with
a predetermined variable, and study existence and stability of solutions
driven by an extraneous finite-state Markov process. We show
that when the model is indeterminate there exists a new class of kstate
dependent sunspot equilibria in addition to the k-state sunspot
equilibria (k-SSEs) already known to exist in part of the indeterminacy
region. The new type of equilibria, which we call ergodic k-SSEs,
are driven by a finite-state sunspot but can have an infinite range of
values even in the nonstochastic model. Stability under econometric
learning is analyzed using representations that nest both types of
equilibria. 2-SSEs and ergodic 2-SSEs are learnable for parameters in
proper subsets of the regions of their existence. Our results extend to
models with intrinsic random shocks. |
en |
dc.format.extent |
761525 bytes |
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dc.format.mimetype |
application/pdf |
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dc.language.iso |
en_US |
en |
dc.publisher |
University of Oregon, Dept of Economics |
en |
dc.relation.ispartofseries |
University of Oregon Economics Department Working Papers ; 2006-13 |
en |
dc.subject |
Markov sunspots |
en |
dc.subject |
Learning |
en |
dc.subject |
Indeterminacy |
en |
dc.subject |
Expectational stability |
en |
dc.title |
Stable Finite-State Markov Sunspots |
en |
dc.type |
Working Paper |
en |