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A Herding Perspective on Global Games and Multiplicity

Costain, James - In: Contributions to Theoretical Economics 7 (2007) 1, pp. 1128-1128

Recently, it has been claimed that full-information multiple equilibria in games with strategic complementarities are not robust, because generalizing to allow slightly heterogeneous information implies uniqueness. This paper argues that this "global games" uniqueness result is itself not...

Persistent link: https://www.econbiz.de/10005751277

Indeterminacy and the Stability Puzzle in Non-Convex Economies

Evans, George; McGough, Bruce - In: Contributions to Macroeconomics 5 (2005) 1, pp. 1264-1264

generated by standard models of indeterminacy, we find, under one information assumption, that no stable sunspots exist, and … form contains parameter regions in which sunspots are stable under learning. However, for parameters restricted to those … under another information assumption, that they exist only for a very small part of the indeterminacy region. This leads to …

Persistent link: https://www.econbiz.de/10005751492

Sunspots, indeterminacy and Pareto inefficiency in economies with incomplete markets

Pietra, Tito - In: Economic Theory 24 (2004) 3, pp. 687-699

We consider two periods economies with both intrinsic and extrinsic uncertainty. Asset markets are incomplete in the certainty economy. If assets are nominal, there are enough commodities and the number of agents is greater than two and smaller than the total number of states of nature...

Persistent link: https://www.econbiz.de/10005753163

Sunspot-like equilibria in an overlapping generations economy with strategic interactions

Giannatale, Sonia - In: Economic Theory 35 (2008) 1, pp. 191-199

Persistent link: https://www.econbiz.de/10005753315

Sunspot Rational Beliefs Structures, Equilibria and Excess Volatility

Nielsen, Carsten - In: Contributions to Theoretical Economics 7 (2007) 1, pp. 1340-1340

RB in general equilibrium models. Individual rational beliefs are assumed correlated by means of sunspots which at the …

Persistent link: https://www.econbiz.de/10005579653

A Role for Sunspots in Explaining Endogenous Fluctutations in Illegal Immigration

Haslag, Joseph; Guzman, Mark G.; Orrenius, Pia M. - Economics Department, University of Missouri - 2003

In this paper we provide an alternative explanation for why illegal immigration can exhibit substantial fluctuations despite a constant wage gap. We develop a model economy in which migrants make decisions in the face of uncertain border enforcement and lump-sum transfers from the host country....

Persistent link: https://www.econbiz.de/10005585676

Risk and Wealth in a Model of Self-Fulfilling Currency Attacks

Morris, Stephen; Guimaraes, Bernardo - School of Management, Yale University - 2004

We analyze the effect of risk aversion, wealth and portfolios on the behavior of investors in a global game model of currency crises with continuous action choices. The model generates a rich set of striking theoretical predictions. For example, risk aversion makes currency crises significantly...

Persistent link: https://www.econbiz.de/10005587096

Learning and Macroeconomics

Evans, George W.; Honkapohja, Seppo - Department of Economics, University of Oregon - 2008

Expectations play a central role in modern macroeconomic theories. The econometric learning approach models economic agents as forming expectations by estimating and updating forecasting models in real time. The learning approach provides a stability test for rational expectations and a...

Persistent link: https://www.econbiz.de/10005593735

Monetary Policy, Indeterminacy and Learning

Evans, George W.; McGough, Bruce - Department of Economics, University of Oregon - 2003

potential dependence on extraneous "sunspots," for some structural and policy parameters. We investigate the stability of these …

Persistent link: https://www.econbiz.de/10005593762

On the plausibility of sunspot equilibria

Chen, Shu-Heng; Liao, Chung-Chih; Chou, Pei-Jung - In: Journal of Economic Interaction and Coordination 3 (2008) 1, pp. 25-41

Persistent link: https://www.econbiz.de/10005613372