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Existence of Adaptively Stable Sunspot Equilibria near an Indeterminate Steady State Author info | Abstract | Publisher info | Download info | Related research | Statistics George W. Evans () (University of Oregon Economics Department)
Seppo Honkapohja (University of Helsinki)
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We examine the nonlinear model x_t = E_t F(x_(t+1)). Markov SSEs exist near an indeterminate steady state, hat(x)=F(hat(x)), provided |F'(hat(x)| > 1. Despite the importance of indeterminancy in macroeconomics, earlier results have not provided conditions for the existance of adaptively stable SSEs near an indeterminate steady state. We show that there exists Markov SSEs near hat(x) that are E-stable, and therefore locally stable under adaptive learning, if F'(hat(x)) < -1.
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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number
2002-9.
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Length: 13
Date of creation: 06 Apr 2002Date of revision:
06 Apr 2002Handle: RePEc:ore:uoecwp:2002-9Contact details of provider: Postal: 1285 University of Oregon, 435 PLC, Eugene, OR 97403-1285 Phone: (541) 346-4661 Fax: (541) 346-1243 Email: Web page: http://economics.uoregon.edu/ More information through EDIRC
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Keywords: Indeterminacy learnability expectational stability endogenous fluctuations Other versions of this item:
Find related papers by JEL classification: C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Honkapohja, Seppo & Mitra, Kaushik, 2001.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
CEPR Discussion Papers
2846, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Kaushik Mitra & Seppo Honkapohja, 2004.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/13, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Seppo Honkapohja & Kaushik Mitra, .
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
Discussion Papers
01/05, Department of Economics, University of York.
[Downloadable!] Honkapohja, S. & Mitra, K., 2001.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
University of Helsinki, Department of Economics
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Honkapohja, Seppo & Mitra, Kaushik, 2004.
"Are non-fundamental equilibria learnable in models of monetary policy? ,"
Journal of Monetary Economics ,
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Other versions: Chiappori, Pierre-Andre & Geoffard, Pierre-Yves & Guesnerie, Roger, 1992.
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THEMA Working Papers
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Evans, Geroge W & Honkapohja, Seppo & Romer, Paul, 1998.
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"Growth Cycles ,"
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91-10, DELTA (Ecole normale supérieure).
Evans, George W. & Honkapohja, Seppo & Marimon, Ramon, 2001.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!]
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George W. Evans & Seppo Honkapohja & Ramon Marimon, 2002.
"Stable Sunspot Equilibira in a Cash-in-Advance Economy ,"
University of Oregon Economics Department Working Papers
2001-5, University of Oregon Economics Department, revised 15 Nov 2005.
[Downloadable!] George W. Evans & Seppo Honkapohja & Ramon Marimon, 2004.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
Economics Working Papers
844, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2005.
[Downloadable!] George Evans & Seppo Honkapohja & Ramon Marimon, 2007.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
Advances in Macroeconomics ,
Berkeley Electronic Press, vol. 7(1), pages 1165-1165.
[Downloadable!] (restricted) Evans George W. & Honkapohja Seppo, 1994.
"On the Local Stability of Sunspot Equilibria under Adaptive Learning Rules ,"
Journal of Economic Theory ,
Elsevier, vol. 64(1), pages 142-161, October.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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[Downloadable!] (restricted) George Evans & Seppo Honkapohja & Ramon Marimon, 2007.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
Advances in Macroeconomics ,
Berkeley Electronic Press, vol. 7(1), pages 1165-1165.
[Downloadable!] (restricted)
Other versions:
Evans, George W. & Honkapohja, Seppo & Marimon, Ramon, 2001.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
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[Downloadable!] George W. Evans & Seppo Honkapohja & Ramon Marimon, 2002.
"Stable Sunspot Equilibira in a Cash-in-Advance Economy ,"
University of Oregon Economics Department Working Papers
2001-5, University of Oregon Economics Department, revised 15 Nov 2005.
[Downloadable!] George W. Evans & Seppo Honkapohja & Ramon Marimon, 2004.
"Stable Sunspot Equilibria in a Cash-in-Advance Economy ,"
Economics Working Papers
844, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2005.
[Downloadable!] George Evans & Bruce McGough, 2005.
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2003-34, University of Oregon Economics Department, revised 01 Apr 2004.
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George W. Evans & Bruce McGough, 2003.
"Monetary Policy, Indeterminacy and Learning ,"
CFS Working Paper Series
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[Downloadable!] Evans, George W. & McGough, Bruce, 2005.
"Monetary policy, indeterminacy and learning ,"
Journal of Economic Dynamics and Control ,
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[Downloadable!] (restricted) Evans, George W. & Honkapohja, Seppo, 2004.
"The E-Correspondence Principle ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!]
Other versions:
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"The E-correspondence Principle ,"
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2003-27, University of Oregon Economics Department, revised 10 Jun 2005.
[Downloadable!] George W. Evans & Seppo Honkapohja, 2007.
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Economica ,
London School of Economics and Political Science, vol. 74(293), pages 33-50, 02.
[Downloadable!] (restricted) Seppo Honkapohja & Kaushik Mitra, .
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
Discussion Papers
01/05, Department of Economics, University of York.
[Downloadable!]
Other versions:
Kaushik Mitra & Seppo Honkapohja, 2004.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/13, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Honkapohja, S. & Mitra, K., 2001.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
University of Helsinki, Department of Economics
501, Department of Economics.
Honkapohja, Seppo & Mitra, Kaushik, 2001.
"Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? ,"
CEPR Discussion Papers
2846, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Honkapohja, Seppo & Mitra, Kaushik, 2004.
"Are non-fundamental equilibria learnable in models of monetary policy? ,"
Journal of Monetary Economics ,
Elsevier, vol. 51(8), pages 1743-1770, November.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja, 2008.
"Learning and Macroeconomics ,"
University of Oregon Economics Department Working Papers
2008-3, University of Oregon Economics Department.
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