Sunspot Fluctuations in Dynamics with Predetermined Variables

Posted: 29 Sep 2001

See all articles by Julio Davila

Julio Davila

University of Pennsylvania - Department of Economics; Center of National Scientific Research

Abstract

In this paper, I study the existence of Sunspot Equilibria in a general framework whose dynamics allow for the presence of predetermined variables in the system. The main motivation for this research comes from the fact that previous studies did not allow for such predetermined variables which, nevertheless, appear quite naturally in economic models. I show, for a non-negligible subset of dynamics with predetermined variables verifying usual assumptions, the existence of Stationary Sunspot Equilibria fluctuating between an arbitrary finite number of states arbitrarily close to a steady state.

Keywords: Sunspot equilibria, dynamics, memory

JEL Classification: E32,D84,C62.

Suggested Citation

Davila, Julio, Sunspot Fluctuations in Dynamics with Predetermined Variables. Available at SSRN: https://ssrn.com/abstract=275175

Julio Davila (Contact Author)

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
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United States

Center of National Scientific Research

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France

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