Unique equilibrium in a dynamic model of crises with frictions

Guimaraes, Bernardo (2005) Unique equilibrium in a dynamic model of crises with frictions. [Working paper]

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This paper studies a dynamic model of crises with timing frictions that combines the main aspects of Morris and Shin (1998) and Frankel and Pauzner (2000). The usual arguments for existence and uniqueness of equilibrium cannot be applied. It is shown that the model has a unique equilibrium within the class of threshold equilibria.

Item Type	Working paper
Keywords	Unique equilibrium,crises,dynamics,strategic complementarities
Departments	Centre for Economic Performance Economics
Date Deposited	19 May 2008 09:56
URI	https://researchonline.lse.ac.uk/id/eprint/4907