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Comparing expectational stability criteria in dynamical models: a preparatory overview

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Stéphane Gauthier
Roger Guesnerie

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Abstract

This paper compares the most significant expectational stability criteria that have been used to assess the plausibility of perfect foresight trajectories in forward-looking dynamical systems: determinacy of trajectories, absence of neighbour sunspot trajectories, and convergence of "evolutive" and "eductive" learning processes. It examines, within a set of increasingly complex dynamical models, the robustness of an equivalence principle suggested by the analysis of the simplest classes of those models.

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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2004-09.

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Date of creation: 2004
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Handle: RePEc:del:abcdef:2004-09

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