We examine stability under learning of sunspot equilibria in Real Business Cycle type models with indeterminacies. Our analysis emphasizes the importance of examining alternative representations of sunspot solutions. A general bivariate reduced form contains parameter regions in which sunspots are stable under learning. However, for parameters restricted to those generated by standard models of...

We investigate reactions to sunspots in a bank-run game in a controlled laboratory environment. The sunspot variable is a series of random public announcements predicting withdrawal outcomes. The treatment variable is the coordination parameter, defined as the minimum fraction of depositors required to wait so that waiting entails a higher payoff than withdrawing. We conduct treatments with hig...

Correlated equilibria in strategic market games played, simultaneously, by “overlapping generations” of players correspond to sunspot equilibria in the associated, competitive economy. The lower the degree of competition, the larger the range of parameters that allow for effective correlation or endogenous stochastic fluctuations.

■ Abstract Important physical processes on the Sun, and especially in sunspots, occur on spatial scales at or below the limiting resolution of current solar telescopes. Over the past decade, using a number of new techniques, high-resolution observations have begun to reveal the complex thermal and magnetic structure of a sunspot, along with associated flows and oscillations. During this time re...

We examine a general equilibrium model with collateral constraints and increasing returns to scale in production. The utility function is nonseparable, with no income e¤ect on the consumer’s choice of leisure. Unlike this model without a collateral constraint, we …nd that indeterminacy of equilibria is possible. Hence, business cycles can be driven by self-ful…lling expectations. This is the ca...

The eeect of line overlap (blending) on broadband linear (NLP) and circular (NCP) polarisation in spectra of solar magnetic regions , especially sunspot umbrae, is explored in a systematic way, employing spectrum synthesis in polarised light on a grand scale over thousands of Angstrr oms. An extensive grid of theoretical Stokes IQU V spectra allows the discussion of the dependence of NLP and NC...

This paper proves that, in a general financial model with incomplete markets, the multiplicity of certainty equilibria is not necessary for the existence of sunspot effects. These effects are present, by definition, when real economic variables differ across realizations of extrinsic uncertainty. In a financial model of incomplete markets with identical payouts across realizations of extrinsic ...

Locally weighted regression (LOESS) is a modern non-parametric method designed for treating cases where classical procedures are not highly efficient or cannot applied efficiently. Sunspots the darker areas of solar sphere's surface relative to other regions and an important indicator activity .The aim this paper model predict number sunspots because their very importance understanding terrestr...