A comprehensive exposition of rational expectations models is provided here, working up from simple univariate models to more sophisticated multivariate and non-linear models.
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This book provides a comprehensive exposition of rational expectation models. Starting with the basic concepts of expectation schemes, it evolves from simple univariate models to more sophisticated multivariate and nonlinear models. The emphasis is on providing methodological grounds fpr practical applications of rational expectations models. Attention is given to important classes of solutions, such as linear solutions, stationery solutions, sunspot equilibria and co-integrated series.
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