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How to Get the Blanchard-Kahn Form from a General Linear Rational Expectations Model

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Boucekkine, Raouf [Universidad Carlos III de Madrid] Le Van, Cuong [CNRS-CEPREMAP] Schubert, Katheline [Université de Paris I]

In this paper we prove that every linear model with rational expectations can be transformed by means of an one-to-one mapping into another model which has one of the following properties: i) it is degenerated, ii) it is backward, iii) it has a Blanchard-Kahn form. In addition to some simple illustrations, we provide two applications on two nonlinear forward-looking economic models in order to show how to use our theoretical analysis for local stability assessement.

Document type Document de travail (Working Paper)
Access type Accès restreint
Publication date 1996
Language Anglais
Number of pages 14 pages
Collection Computing in economics and finance - 1996-35, Open access publication from Universidad Calros III de Madrid - 96-25
Affiliations Universidad Carlos III de Madrid - Departamento de economía
CNRS-CEPREMAP
Université de Paris I
Keywords Expectations ; Blanchard-Kahn form ; Reduction algorithms
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Bibliographic reference Boucekkine, Raouf ; Le Van, Cuong ; Schubert, Katheline. How to Get the Blanchard-Kahn Form from a General Linear Rational Expectations Model. Computing in economics and finance ; 1996-35 (1996) 14 pages
Permanent URL http://hdl.handle.net/2078/95418