SEMINAR SERIES
Macroeconomics Seminar (Joint with Macroeconomics seminar, KIER)
Katsuyuki Shibayama（School of Economics, University of Kent）
- Date&Time:
- 2023.11.10 (Fri) 13:15-14:45
- Venue:
- Refresh Room on 8F, Faculty of Law and Faculty of Economics, East Bldg., Yoshida Campus, Kyoto University
- Language:
- English
- Contact:
- Shinichi Nishiyama
(Title)
"Intertemporal and Intratemporal Stability"
Abstract: This paper extends Arrow and Hurwicz’ (1958, AH58 henceforth) analysis to dynamic general equilibrium models. Suppose that an agent in a model makes some mistakes, i.e., some of his FOCs and/or constraints fail to hold. Then, we are interested in whether or not there are proper incentives for him to adjust his decision toward the equilibrium. The paper shows that in many models with indeterminacy, agents have incentives to correct errors in a wrong direction. More precisely, if the gap of the numbers of unstable roots and dynamic jump variables is one, then the model must be unstable in AH58’s sense.
Speaker’s website：https://www.kent.ac.uk/economics/people/2172/shibayama-katsuyuki