Functional Sunspot Equilibria
نویسندگان
چکیده
Consider a one step forward looking model where agents have beliefs about the law of motion of the system, and their forecast for the next period is made with knowledge of the past values of the state variable but not the current value, and is allowed to depend on the current realization of an extrinsic random process. The paper provides (and characterizes) the conditions for the existence of sunspot equilibria for the model described.
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