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Eductive stability in real business cycle models
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dc.contributor.author | Evans, George W. | |
dc.contributor.author | Guesnerie, Roger | |
dc.contributor.author | McGough, Bruce | |
dc.date.accessioned | 2020-05-20T23:34:06Z | |
dc.date.available | 2020-05-20T23:34:06Z | |
dc.date.issued | 2019-02 | |
dc.identifier | 252588205 | |
dc.identifier | 6fecd29d-df76-429b-b555-b062ce856cff | |
dc.identifier | 85067199596 | |
dc.identifier | 000463189800009 | |
dc.identifier.citation | Evans , G W , Guesnerie , R & McGough , B 2019 , ' Eductive stability in real business cycle models ' , The Economic Journal , vol. 129 , no. 618 , pp. 821–852 . https://doi.org/10.1111/ecoj.12620 | en |
dc.identifier.issn | 0013-0133 | |
dc.identifier.uri | https://hdl.handle.net/10023/19975 | |
dc.description | This work has been supported by National Science Foundation Grant no. SES-1025011 and by the French National Research Agency, through the program Investissements d’Avenir, ANR-10—LABX_93-01. | en |
dc.description.abstract | Within the standard RBC model we examine issues of expectational coordination on the unique rational expectations equilibrium. We show the sensitivity of agents’ plans and decisions to their short-run and longrun expectations is too great to trigger eductive coordination in a world of rational agents who are endowed with knowledge of the economic structure and contemplate the possibility of small deviations from equilibrium: eductive stability never obtains. We conclude adaptive learning must play a role in real-time dynamics. Our eductive instability theorem has a counterpart under adaptive learning: even with asymptotic stability the transition dynamics can involve large departures from rational expectations. | |
dc.format.extent | 605256 | |
dc.language.iso | eng | |
dc.relation.ispartof | The Economic Journal | en |
dc.subject | Learning | en |
dc.subject | Expectational coordination | en |
dc.subject | Stability | en |
dc.subject | HB Economic Theory | en |
dc.subject | T-NDAS | en |
dc.subject | BDC | en |
dc.subject | R2C | en |
dc.subject.lcc | HB | en |
dc.title | Eductive stability in real business cycle models | en |
dc.type | Journal article | en |
dc.contributor.institution | University of St Andrews. School of Economics and Finance | en |
dc.identifier.doi | 10.1111/ecoj.12620 | |
dc.description.status | Peer reviewed | en |
dc.date.embargoedUntil | 2020-05-21 |
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