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
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