IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-06879-1_10.html
   My bibliography  Save this book chapter

On the Assumption of Convergent Rational Expectations

In: Issues in Contemporary Macroeconomics and Distribution

Author

Listed:
  • Edwin Burmeister

Abstract

Both rational expectations and perfect foresight models are featured by the following indeterminacy problem: for given initial values of predetermined state variables, there may exist more than one dynamic equilibrium path. This type of indeterminacy arises because there are non-state variables whose initial values must be determined using criteria outside of the formal model. In general ‘the model’ can be expanded to include restrictions that uniquely determine these non-state variables. However, if there are many equally plausible sets of restrictions, the uniqueness issue remains unresolved.

Suggested Citation

  • Edwin Burmeister, 1985. "On the Assumption of Convergent Rational Expectations," Palgrave Macmillan Books, in: George R. Feiwel (ed.), Issues in Contemporary Macroeconomics and Distribution, chapter 10, pages 258-269, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-06879-1_10
    DOI: 10.1007/978-1-349-06879-1_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-06879-1_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.