Information lag and dynamic stability

B-Tier
Journal: Journal of Mathematical Economics
Year: 2008
Volume: 44
Issue: 5-6
Pages: 513-529

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The role of information in economic dynamics is examined. A misconception that the removal of uncertainty always brings additional stability to an existing equilibrium is clarified. It is shown that the relation between information and equilibrium stability is not monotonic. Removing information lag may be either beneficial or detrimental to the stability of an economic equilibrium. Although the focus is on two-dimensional economic system where economically plausible possibilities are studied in theory and numerically illustrated, the conclusions have general implications to any multi-dimensional system.

Technical Details

RePEc Handle
repec:eee:mateco:v:44:y:2008:i:5-6:p:513-529
Journal Field
Theory
Author Count
1
Added to Database
2026-02-02