Representations and Sunspot Stability
Abstract
By endowing his agents with simple forecasting models, or representations, Woodford (1990) found that finite state Markov sunspot equilibria may be stable under learning. We show that common factor representations generalize to all sunspot equilibria the representations used by Woodford (1990). We find that if finite state Markov sunspots are stable under learning then all sunspots are stable under learning, provided common factor representations are used.Download Info
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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2007-1.Length: 8
Date of creation: 01 Jan 2007
Date of revision: 28 Aug 2008
Handle: RePEc:ore:uoecwp:2007-1
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Related research
Keywords: Indeterminacy; Sunspot Equilibria; E-stability;Other versions of this item:
- Evans, George W. & McGough, Bruce, 2011. "Representations And Sunspot Stability," Macroeconomic Dynamics, Cambridge University Press, vol. 15(01), pages 80-92, February.
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-03 (All new papers)
- NEP-CBA-2007-02-03 (Central Banking)
- NEP-MAC-2007-02-03 (Macroeconomics)
References
References listed on IDEASPlease 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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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Michele Berardi, 2011. "Heterogeneous sunspots solutions under learning and replicator dynamics," Centre for Growth and Business Cycle Research Discussion Paper Series 160, Economics, The Univeristy of Manchester.
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