### Abstract

So-called "search equilibrium models" typically have multiple equilibria. In almost all studies on these models, only steady states are considered mainly because it is difficult to find non-stationary equilibria. This difficulty does not disappear even if we consider finite-horizon versions of these models. In this note, we propose an approach that might be useful to study non-stationary equilibria in these models. In particular, we consider a discrete-time and finitehorizon version of Diamond's (1982. JPE) model and show how to solve it backwardly. As an illustration, we compute a non-stationary equilibrium of a specific example, which exhibits a three-period cycle.

Original language | English |
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Pages (from-to) | 234-246 |

Number of pages | 13 |

Journal | Economics Bulletin |

Volume | 33 |

Issue number | 1 |

Publication status | Published - 2013 Aug 30 |

### ASJC Scopus subject areas

- Economics, Econometrics and Finance(all)

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## Cite this

*Economics Bulletin*,

*33*(1), 234-246.