On the Robustness of Bubbles in Linear RE Models
分析了线性理性预期模型中不同解的预期稳定性，发现连续统的泡沫解不能强E稳定，但特定参数下某些泡沫解可以强E稳定，并应用于含实际余额效应的宏观经济模型。
The authors analyze the expectational stability (E-stability) of the different solutions of a linear rational expectations model in which the endogenous variable depends on expectations of its current and future values, formed in the past, and also on its own lagged value. It is shown that continuum of bubble solutions cannot be strongly E-stable. In contrast, for certain parameter values, a particular solution that would normally be identified as a bubble solution can be strongly E-stable. The results are applied to a macroeconomic model with real balance effects. Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.