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Do heterogeneous expectations constitute a challenge for policy interaction?. (2016). Gasteiger, Emanuel.
In: Discussion Papers.
RePEc:zbw:fubsbe:201614.

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  1. A. MODEL DERIVATIONS Consider the problem of individual household i. We define Wς t+1(i) ≡ mς t(i)+ bς t(i) and xς t+1(i) = mς t(i). Then the household’s problem can be solved by the very same Lagrangian as in Evans and Honkapohja (2007), i.e., L = Eς t ( ∞ X t=0 βt (1 − σ1)−1 cς t(i)(1−σ1) + A(1 − σ2)−1 (xς t(i)π−1 t )(1−σ2) −βt+1 1,t+1 Wς t+1(i) − y + ct(i) + τt − xς t(i)π−1 t − Rt−1π−1 t (Wς t (i) − xς t(i)) −βt+1 2,t+1 xς t+1(i) − mς t(i)
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  25. Et{π̃t+1} + const., (A.15) or, following Evans and Honkapohja (2007, p.688) and ignoring the constant, we can express (A.15) more compact as m̃t = C̃ b Et{π̃t+1}. B. DETERMINACY CONDITIONS AND LINEAR RESTRICTIONS By defining yt ≡ [π̃t, b̃t, π̃t−1]0 , the system can be rearranged as yt = Jyt+1 + F1ηt+1 + F2θt+1 + F3θt + F4ψt+1, where (B.1) J =       0 0 1 0 (β−1 − γ)−1 ((αβ)ϕ1+ϕ2) (β−1−γ) − χ Θ 0 (αβ) Θ       (B.2) is the Jacobian of the system.24
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  49. Is the Friedman Rule Stabilizing? Some Unpleasant Results in a Heterogeneous Expectations Framework. (2013). Guerini, Mattia.
    In: DISCE - Working Papers del Dipartimento di Economia e Finanza.
    RePEc:ctc:serie1:def3.

    Full description at Econpapers || Download paper

  50. Is the Friedman Rule Stabilizing? Some Unpleasant Results in a Heterogeneous Expectations Framework. (2013). Guerini, Mattia.
    In: DISCE - Working Papers del Dipartimento di Economia e Finanza.
    RePEc:ctc:serie1:def003.

    Full description at Econpapers || Download paper

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