These two economies were not subject to any real shocks, and there were no stationary periodic equilibria in the neighborhood of the steady state.
The stationary sunspot equilibria of a simple overlapping generations economy with heterogeneous agents are considered.
The results show that stationary rational expectations equilibria of this model are unstable under this type of evolutionary adaptation.
Depending on the parameter values, this model can have different unique stationary equilibria, as well as multiple stationary equilibria.
However, we show below that even when we restrict our attention to this class of functions, an extremely large number of stationary rational-expectations equilibria exist.
His suggestion that we attempt to generate stationary equilibria of this kind provided the initial stimulus for the work reported here. 10.
The first dynamic implication concerns stationary-state equilibria, equilibria in which public commitments, their shadow price, and inflation all remain constant over time.
Theorem 4 does not come close to being a complete characterization of the set of stationary rational-expectations equilibria.
