The E‐Correspondence Principle

C-Tier
Journal: Economica
Year: 2007
Volume: 74
Issue: 293
Pages: 33-50

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We present a new application of Samuelson's Correspondence Principle to the analysis of comparative dynamics in stochastic rational expectations models. Our version, which we call the E‐correspondence principle, applies to rational expectations equilibria that are stable under least squares and closely related learning rules. With this technique it is sometimes possible to study, without explicitly solving for the equilibrium, how qualitative properties of the equilibrium are affected by changes in the model parameters. Applications to overlapping generations and New Keynesian models illustrate the potential of the technique.

Technical Details

RePEc Handle
repec:bla:econom:v:74:y:2007:i:293:p:33-50
Journal Field
General
Author Count
2
Added to Database
2026-01-25