The major contributions of the present project can be succinctly summarized as follows. We first provide a very tractable and efficient solution methodology to the broad class of the MSRE models. Second, we derive necessary and sufficient conditions u...
The major contributions of the present project can be succinctly summarized as follows. We first provide a very tractable and efficient solution methodology to the broad class of the MSRE models. Second, we derive necessary and sufficient conditions under which a general MSRE
model has a unique stationary REE and completely characterize the
set of REEs to MSRE models. Third, instead of solving for the entire set of REEs, we first refine the MSRE models to those that can be regarded as economically relevant and then
characterize the full set of REEs.