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Marco Huesch |
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''Sunspots do matter: a simple disproof of Mas-Colell'' |
( 2008, Vol. 5 No.19 ) |
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Mas-Colell conjectured that, for economies admitting a unique deterministic equilibrium, sunspot equilibria that 'matter'' would not exist. I prove an abundance of such equilibria using simple linear algebra. |
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Keywords: Animal Spirits |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) |
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Manuscript Received : Jun 24 2008 | | Manuscript Accepted : Jul 03 2008 |
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