01859cam a22002417 4500001000600000003000500006005001700011008004100028100002300069245012600092260006600218490005100284500001500335520075800350530006101108538007201169538003601241690013901277710004201416830008601458856003701544856003601581t0297NBER20160725112044.0160725s2004 mau||||fs|||| 000 0 eng d1 aMcCallum, Bennett.10aOn the Relationship Between Determinate and MSV Solutions in Linear RE Modelsh[electronic resource] /cBennett McCallum. aCambridge, Mass.bNational Bureau of Economic Researchc2004.1 aNBER technical working paper seriesvno. t0297 aJuly 2004.3 aThis paper considers the possibility that, in linear rational expectations (RE) models, all determinate (uniquely non-explosive) solutions coincide with the minimum state variable (MSV) solution, which is unique by construction. In univariate specifications of the form y(t) = AE(t)y(t+1) + Cy(t-1) + u(t) that result holds: if a RE solution is unique and non-explosive, then it is the same as the MSV solution. Also, this result holds for multivariate versions if the A and C matrices commute and a certain regularity condition holds. More generally, however, there are models of this form that possess unique non-explosive solutions that differ from their MSV solutions. Examples are provided and a strategy for easily constructing others is outlined. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aC6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling2Journal of Economic Literature class.2 aNational Bureau of Economic Research. 0aTechnical Working Paper Series (National Bureau of Economic Research)vno. t0297.4 uhttp://www.nber.org/papers/t029741uhttp://dx.doi.org/10.3386/t0297