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Cycles, Steady States and Sunspot Equilibrium in Models with Memory

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  • Maldonado, Wilfredo Leiva

Abstract

In this paper I provide necessary and sufficient conditions for the existence of Markovian sunspot equilibrium around a cycle or multiple steady states in models with lagged variables. These conditions are numerically tested in three endogenous growth models and it is shown the non-existence of these stochastic equilibria in a neighborhood of the cycle or multiple steady states.

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  • Maldonado, Wilfredo Leiva, 2000. "Cycles, Steady States and Sunspot Equilibrium in Models with Memory," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 20(2), November.
    • Handle: RePEc:sbe:breart:v:20:y:2000:i:2:a:2757
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