Coordination on saddle-path solutions: the eductive viewpoint - linear multivariate models

• 成果类型: Article
• 署名作者: Evans, GW; Guesnerie, R
• 署名单位: University of Oregon; Universite PSL; College de France
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2004.06.010
• 发表日期: 2005
• 页码: 202-229
• 关键词: coordination; structural heterogeneity; strong rationality; eductive stability; multisectoral models

摘要

We examine local strong rationality (LSR) in multivariate models with both forward-lookin expectations and predetermined variables. Given hypothetical common knowledge restrictions that the dynamics will be close to those of a specified minimal state variable solution, we obtain eductive stability conditions for the solution to be LSR. In the saddlepoint stable case the saddle-path solution is LSR provided the model is structurally homogeneous across agents. However, the eductive stability conditions are strictly more demanding when heterogeneity is present, as can be expected in multisectoral models. Heterogeneity is thus a potentially important source of instability even in the saddlepoint stable case. (c) 2005 Elsevier Inc. All rights reserved.