A number of authors have attemted to test whether the U.S. economy is in a determinate or an indeterminate equilibrium … provide examples of two economic models. Model 1 displays an indeterminate equilibrium, driven by sunspots. Model 2 displays a … determinate equilibrium driven by fundamentals. Given assumptions about the shock distribution of model 2, it is possible to find …

rate) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large enough shocks initiate …

This paper uses the EAGLE, a multi-country dynamic general equilibrium model, to illustrate dynamic adjustments in a …

is that demographic changes, while contributing slowly over time to a decline in the equilibrium interest rate, are not …

Dynamic stochastic general equilibrium models have recently become standard tools for policy-oriented analyses …

Monetary Union tempts governments to exploit the enlarged common pool of savings. In Nash equilibrium all governments increase …

Equilibrium correction models of the price level are often used to model inflation. Such models assume that the long …