To make high-quality research more accessible and easier to explore.

Fields:

Rational Expectations in Dynamic Linear Models: Analysis of the Solutions

Econometrica 1982 50(2), 409
In this paper we analyze the solutions of linear econometric models with rational expectations. More precisely, we describe in detail the set of all the solutions; in particular this set is shown to be much larger than the sets previously considered. We also study various criteria of selection in this set of solutions and we examine to what extent these criteria redtiuce the set of the solutions.