%0 Journal Article
%T Solution for Rational Expectation Models Free of Complex Numbers
%A Frank Hespeler
%J Theoretical Economics Letters
%P 47-52
%@ 2162-2086
%D 2011
%I Scientific Research Publishing
%R 10.4236/tel.2011.13011
%X This paper approaches the problem of the potential for complex-valued solutions within linear macroeconomic models with rational expectations. It finds that these problems are associated with a specific solution method for the underlying model. The paper establishes that the danger of complex-valued solutions always can be eliminated by forcing those solutions to fulfill additional constraints. These constraints are essentially restrictions on the degrees of freedoms in indeterminate solutions.
%K Rational Expectation Models
%K Indeterminacy
%K Potentially Complex Coefficients
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=8316