On Concurrent Solutions in Differential Games

@inproceedings{Correa2011OnCS,
  title={On Concurrent Solutions in Differential Games},
  author={Romar Correa},
  year={2011}
}
We examine solutions in which neither player is worse off from the leadership of one in a policy maker-public game. The loop model of dynamic games is used. Outcome space is dotted with equivalence classes of solutions. The Dynamic Stochastic General Equilibrium (DSGE) results and their New Keynesian variants might represent one category. The economy is the neighborhood of a market-clearing equilibrium with Pareto-optimal properties modulo frictions. Our interest lies in the ‘old’ Keynesian… CONTINUE READING