Estimation and Identification of Structural Parameters in the Presence of Multiple Equilibria

26 Pages Posted: 17 May 2002

See all articles by Russell Cooper

Russell Cooper

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 2002

Abstract

This paper studies quantitative implications of model economies that exhibit multiple equilibria. The goal is to assess two interrelated issues. First, do economies with multiple equilibria have falsifiable predictions? Second, is identification possible in economies that exhibit multiple equilibria? Put differently, are these economies observationally equivalent to economies with unique equilibria? We raise these questions within a general framework and then study a series of examples to determine how the existing literature has addressed them.

Suggested Citation

Cooper, Russell W., Estimation and Identification of Structural Parameters in the Presence of Multiple Equilibria (May 2002). NBER Working Paper No. w8941. Available at SSRN: https://ssrn.com/abstract=312654

Russell W. Cooper (Contact Author)

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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