Another weakness of "determinacy" as a selection criterion for rational expectations models
AbstractThis paper argues against determinacy as a guide to interpret rational expectations solutions, using an example in which a determinate solution exists but differs sharply in dynamic behavior from that implied by the model considered on a sector-by-sector basis.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 104 (2009)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/ecolet
Determinacy Stability Rational expectations;
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