Can I read Time-consistent decisions and rational expectation equilibrium existence in DSGE models on EtoBox?

Time-consistent decisions and rational expectation equilibrium existence in DSGE models by Kim, Minseong is a scholarly article available to read on EtoBox.

What is Time-consistent decisions and rational expectation equilibrium existence in DSGE models about?

Under some initial conditions, it is shown that time consistency requirements prevent rational expectation equilibrium (REE) existence for dynamic stochastic general equilibrium models induced by consumer heterogeneity, in contrast to static models. However, one can consider REE-prohibiting initial conditions as limits of other initial conditions. The REE existence issue then is overcome by using a limit of economies. This shows that significant care must be taken of when dealing with rational expectation equilibria.

Author

Kim, Minseong

Published

2019

Language

EN