This paper provides an algorithm for computing Markov Perfect Nash Equilibria (Maskin and Tirole, 1988a and b) for … the computational burden of computing equilibria for industries in which a large number of firms are typically active …

-level equilibria? These questions lie at the heart of the current disagreement over how one should view business cycles. This paper …, while in the other it yields up to three equilibria. When more than one equilibrium exists, a selection rule is needed. The … level equilibria had more than one equilibrium existed …

incompleteness produces several interesting effects on aggregate output behavior. First, multiple stochastic equilibria exist in … aggregate activity. These equilibria are distinguished by differences in both the mean and the variance of output. Second … economy across equilibria. Third, when aggregate shocks are recurrent, the economy cycles between periods of boom and …

-Debreu economy. First, multiple stochastic equilibria exist in aggregate activity. These equilibria are distinguished by differences … indefinitely affect real activity by shifting the economy across equilibria. As a result, the model can exhibit periods of boom and …