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Non-computable rational expectations equilibria

โœ Scribed by Jonathan Thomas


Publisher
Elsevier Science
Year
1993
Tongue
English
Weight
678 KB
Volume
25
Category
Article
ISSN
0165-4896

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We provide a computationally simple method of analyzing the e ects of fundamental and sunspot shocks in linear rational expectations models when the equilibrium is indeterminate. Under indeterminacy sunspots can a ect model dynamics through endogenous forecast errors. Moreover, the e ect of fundamen