%0 Journal Article
%T A finite set of equilibria for the indeterminacy of linear rational expectations models
%A Jean-Bernard Chatelain
%A Kirsten Ralf
%J Quantitative Finance
%D 2014
%I arXiv
%X This paper demonstrates the existence of a finite set of equilibria in the case of the indeterminacy of linear rational expectations models. The number of equilibria corresponds to the number of ways to select n eigenvectors among a larger set of eigenvectors related to stable eigenvalues. A finite set of equilibria is a substitute to continuous (uncountable) sets of sunspots equilibria, when the number of independent eigenvectors for each stable eigenvalue is equal to one.
%U http://arxiv.org/abs/1407.6222v1