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Coordination on Saddle Path Solutions: the Eductive Viewpoint. 1- Linear Univariate Models

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Author Info
Evans, G.E.
Guesnerie, R.

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Abstract

We investigate local strong rationality (LSR) in a one step forward looking univariate model with memory one. Eductive arguments are used to determine when common knowledge (CK) that the solution is near some perfect foresight path is sufficient to trigger complete coordination on that path (i.e. the path is LSR).

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Publisher Info
Paper provided by Laval - Laboratoire Econometrie in its series Papers with number 1999-15.

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Length: 25 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:lavale:1999-15

Contact details of provider:
Postal: Chaire d'economie et d'econometrie de l'assurance; DELTA; CREST; PARIS, France.

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Related research
Keywords: ECONOMIC MODELS ; ECONOMETRICS ; MATHEMATICAL ANALYSIS;

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Find related papers by JEL classification:
C00 - Mathematical and Quantitative Methods - - General - - - General
C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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