• 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
  • Pages
    6
  • From page
    55
  • To page
    60
  • 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
  • Serial Year
    2004
  • Journal title
    Economics Letters
  • Record number

    435449