Uniformly Self-Justified Equilibria

  title={Uniformly Self-Justified Equilibria},
  author={Felix Kubler and Simon Scheidegger},
  journal={SSRN Electronic Journal},
We consider dynamic stochastic economies with heterogeneous agents and introduce the concept of uniformly self-justified equilibria (USJE)—temporary equilibria for which forecasts are best uniform approximations to a selection of the equilibrium correspondence. In a USJE, individuals’ forecasting functions for the next period’s endogenous variables are assumed to lie in a compact, finite-dimensional set of functions, and the forecasts constitute the best approximation within this set. We show… 



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