Another weakness of "determinacy" as a selection criterion for rational expectations models

Seonghoon Cho, Bennett T. McCallum

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper argues against determinacy as a guide to interpret rational expectations solutions, using an example in which a determinate solution exists but differs sharply in dynamic behavior from that implied by the model considered on a sector-by-sector basis.

Original languageEnglish
Pages (from-to)17-19
Number of pages3
JournalEconomics Letters
Volume104
Issue number1
DOIs
Publication statusPublished - 2009 Jul 1

Fingerprint

Rational expectations
Determinacy
Selection criteria
Rational expectations models

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

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Another weakness of "determinacy" as a selection criterion for rational expectations models. / Cho, Seonghoon; McCallum, Bennett T.

In: Economics Letters, Vol. 104, No. 1, 01.07.2009, p. 17-19.

Research output: Contribution to journalArticle

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