We examine the stability under learning (E-stability) of sunspot equilibria
in non-convex real business cycle models. The production technology is Cobb-
Douglas with externalities generated by factor inputs. We establish that, with a
general utility function, the well-known Benhabib-Farmer condition (Benhabib
and Farmer, 1994) – that the labor-demand curve is...
Empirical evidence indicates that environmental fluctuations have important effects on fisheries production. However, existing analytical solutions of stochastic fisheries models have been produced only under highly simplified economic and biological conditions. The main contribution of this paper is to derive under general conditions a policy function for the management of...