Date of Original Version

1-2004

Type

Article

Abstract or Description

In univariate RE models of the form yt = AEtyt+1 + Cyt-1 + ut, every determinate solution is also the unique minimum state variable (MSV) solution. More generally, however, there are multivariate models of this form that have unique nonexplosive solutions that differ from their MSV solution.

DOI

10.1016/j.econlet.2004.01.001

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Published In

Economics Letters , 84, 1, 55-60.