The Zero Root Problem: A Note on the Dynamic Determination of the Stationary Equilibrium in Linear Models

S-Tier
Journal: Review of Economic Studies
Year: 1985
Volume: 52
Issue: 2
Pages: 353-357

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Singularity of the transition matrix in differential equation systems implies indeterminacy of the stationary equilibrium: we show that this indeterminacy is only apparent, and we provide the unique solution. There are many examples of, and good theoretical reasons for, singular transition matrices. The main result is that, when stability conditions arc satisfied, the resulting stationary equilibrium will depend upon the intial conditions and the parameters describing the speed of adjustment.

Technical Details

RePEc Handle
repec:oup:restud:v:52:y:1985:i:2:p:353-357.
Journal Field
General
Author Count
2
Added to Database
2026-01-25