Beyer, Andreas; Farmer, Roger E. A. - 2003
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 …