In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the … state space is unbounded. Important examples of such economies are single sector growth models with production externalities … existence and uniqueness of Markovian equilibrium are well known for the compact state space case, no similar sufficient …

equilibrium path from the corresponding perfect-foresight autoregressive Markov jump state motion. As the exact expression of the … condition for the mean-square stability of the obtained rational expectations equilibrium is also provided. -- Rational …