Dynamic determinacy and the existence of sunspot equilibria
type: Item
instance of: scholarly article
title: Dynamic determinacy and the existence of sunspot equilibria
zbMATH Open document ID: 0669.90023
DOI: 10.1016/0022-0531(89)90101-4
published in: Journal of Economic Theory
publication date: 1989-01-01T00:00:00Z
full work available at URL: http://hdl.handle.net/2027.42/28064
review text: This paper relates the existence of stationary sunspot equilibra in the vicinity of a conventional stationary state to the phase diagram surrounding the latter. We find that the local condition required for a unique equilibrium path returning to the stationary state following any slight disturbance of initial conditions is also sufficient to exclude stationary sunspot equilibria in the stationary state's immediate vicinity. In that sense, an eigenvalue condition familiar from dynamic analysis can tell us something about the possibilities of local sunspot activity as well.
Mathematics Subject Classification ID: 91B62
zbMATH DE Number: 4097084
zbMATH Keywords: existence of stationary sunspot equilibra
zbMATH Keywords: unique equilibrium path
zbMATH Keywords: stationary state
zbMATH Keywords: disturbance
zbMATH Keywords: eigenvalue condition
author: John P. Laitner
MaRDI profile type: Publication
OpenAlex ID: W2053192989
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description: scientific article; zbMATH DE number 4097084