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Real-time rational expectations and indeterminacy

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  • Shea, Paul

Abstract

This paper uses the technique of Lubik and Schorfheide [Lubik, T., Schorfheide, F., 2004. Testing for indeterminacy: an application to U.S. monetary policy. The American Economic Review 94 (1), 190-217] to test for indeterminacy in a New Keynesian Model. Using real-time, instead of revised data on the output gap, the results suggest indeterminacy both before 1979 and after 1982.

Suggested Citation

  • Shea, Paul, 2008. "Real-time rational expectations and indeterminacy," Economics Letters, Elsevier, vol. 99(3), pages 530-533, June.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:530-533
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    References listed on IDEAS

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    Cited by:

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    2. Shea, Paul, 2016. "Short-sighted managers and learnable sunspot equilibria," Journal of Macroeconomics, Elsevier, vol. 48(C), pages 117-126.

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