Time Consistency Requirement Implies Generalized Minimal State Variable Criterion
5 Pages Posted: 2 Oct 2019
Date Written: September 20, 2019
We argue that the generalized from of the minimal state variable (MSV) criterion is required to satisfy the time consistency requirement of DSGE models.
Keywords: minimal state variable, MSV criterion, generalized MSV criterion, time consistency, DSGE, dynamic stochastic general equilibrium, equilibrium existence, equilibrium multiplicity, solution criterion, learning
JEL Classification: C62, C32, E10, E13, C61
Suggested Citation: Suggested Citation