Bloise, Gaetano
[UCL]
In this paper, we propose a geometric method for the analysis of first-order sunspot equilibra in a class of nonlinear dynamic economic models without predetermined variables. We show that such stochastic equilibria exist around a steady state whenever it is locally indeterminate. Moreover, under some assumptions, we prove the existence of sunspot equilibria persisting on a full dimensioned support close to the steady state even when local indeterminacy is only lower dimensional, (C) 2001 Academic Press.
Bibliographic reference |
Bloise, Gaetano. A geometric approach to sunspot equilibria. In: Journal of Economic Theory, Vol. 101, no. 2, p. 519-539 (2001) |
Permanent URL |
http://hdl.handle.net/2078.1/42331 |