Farmer, Roger E.A.; Waggoner, Daniel F.; Zha, Tao - In: Journal of Economic Theory 144 (2009) 5, pp. 1849-1867
We develop a set of necessary and sufficient conditions for equilibria to be determinate in a class of forward-looking Markov-switching rational expectations models and we develop an algorithm to check these conditions in practice. We use three examples, based on the new-Keynesian model of...