Hello everybody!
I would like to know what are the implications of having complex eigenvalues. Is this a bad thing? Does it affect the results of the simulation?
Thank you,
Alexandra
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Complex eigenvalues
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Re: Complex eigenvalues
by MichelJuillard » Thu Aug 11, 2011 10:24 am
No it is not necessarily a bad thing. In a linear dynamical system, complex eigenvalues smaller than one in modulus generate damped oscillatory trajectories.
Please, consult a textbook for in depth discussion.
Best
Michel
Please, consult a textbook for in depth discussion.
Best
Michel
- MichelJuillard
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Re: Complex eigenvalues
by ale » Fri Aug 12, 2011 1:36 pm
Thank you very much for your answer. Actually, the complex eigenvalues that I am getting are larger than one in modulus. I will look into this.
Best regards,
Alexandra
Best regards,
Alexandra
- ale
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- Joined: Tue Mar 22, 2011 7:11 pm
Re: Complex eigenvalues
by MichelJuillard » Fri Aug 12, 2011 8:02 pm
Note that the solution of linear rational expectation model involves canceling the effect of eigenvalues larger than one in modulus. Look at the paper by Blanchard and Kahn (1980).
Best
Michel
Best
Michel
- MichelJuillard
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- Joined: Thu Nov 18, 2004 10:51 am
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