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  • Yangyang Ji (a1) (a2) and Wei Xiao (a2)

This paper examines the stability of sunspot equilibria in one-sector RBC models under infinite horizon learning. We present general conditions under which the reduced-form model can possess E-stable sunspot equilibria and apply these conditions to three prominent one-sector RBC models. We find that the rational expectations sunspot equilibria are generally unstable under learning.

Corresponding author
Address correspondence to: Yangyang Ji, China Economics and Management Academy, Central University of Finance and Economics, No. 39, South College Road, Haidian District, 100081 Beijing, China; Department of Economics, State University of New York at Binghamton, 13902 Binghamton, NY, USA; e-mail:
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Macroeconomic Dynamics
  • ISSN: 1365-1005
  • EISSN: 1469-8056
  • URL: /core/journals/macroeconomic-dynamics
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