Title of article :
On the relationship between determinate and MSV solutions in linear RE models
Author/Authors :
Bennett T. McCallum، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2004
Abstract :
In univariate RE models of the form yt=AEtyt+1+Cyt−1+ut, every determinate solution is also the unique minimum state variable (MSV) solution. More generally, however, there are multivariate models of this form that have unique non-explosive solutions that differ from their MSV solution.
Keywords :
Multiple solutions , Rational expectations , indeterminacy
Journal title :
Economics Letters
Journal title :
Economics Letters