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Journal of Political Economy Vol. 85 No. 2 1977

On Two Specifications of Asset Equilibrium in Macroeconomic Models: A Note

Willem H. Buiter; Geoffrey Woglom

Abstract

The continuous version of the end-of-period equilibrium specification is shown to exist when there is a sequence of temporary equilibria. This is also a sufficient condition for the continuous versions of the beginning-of-period and end-of-period specifications to be equivalent. This refutes Foley's contention that perfect foresight is a necessary condition for these results.

DOI
10.1086/260569
Volume
85
Issue
2
Pages
395-400
Language
en
Sources
openalex crossref

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