| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965851 | Journal of Macroeconomics | 2013 | 22 Pages |
Abstract
⺠I study a New-Keynesian DSGE model with limited asset market participation (LAMP). ⺠If LAMP is significant, responding to stock prices facilitates equilibrium determinacy and learnability of REE. ⺠Otherwise, it is likely to induce aggregate instability, in the form of learnable sunspot equilibria. ⺠The results hold both under contemporaneous and forward-looking interest rate rules.
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Economics and Econometrics
Authors
Marco Airaudo,