Heterogeneous expectations, sunspot equilibria and their fragility

C-Tier
Journal: Economics Letters
Year: 2009
Volume: 105
Issue: 3
Pages: 276-279

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

In a simple, univariate forward looking model, we show how a class of sunspot equilibria can depend on the relative fraction of agents under heterogeneous expectations. We then investigate if such equilibrium could be brought about by endogenous predictor choice dynamics.

Technical Details

RePEc Handle
repec:eee:ecolet:v:105:y:2009:i:3:p:276-279
Journal Field
General
Author Count
1
Added to Database
2026-01-24