McGough, Bruce; Meng, Qinglai; Xue, Jianpo - In: Journal of Economic Dynamics and Control 37 (2013) 6, pp. 1126-1141
We examine the stability under learning (E-stability) of sunspot equilibria in non-convex real business cycle models. The production technology is Cobb–Douglas with externalities generated by factor inputs. We establish that, with a general utility function, the well-known Benhabib–Farmer...