Gregoir, Stéphane (2002) "Multiple Equilibria and Identification" by Russel Cooper : A comment. Annales d'Économie et de Statistique, Vol. 66 (N° 2). pp. 27-33.

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Abstract

In his lecture at the Conférence des Annales, Russel W. COOPER raises issues that certainly will become more and more important as models that exhibit multiple equilibria become more and more common in today economic literature. These models are appealing as they may allow econo-
mists to cast some light for instance on the mechanisms that govern the large swings in growth pace or on the reasons why similar institutions can lead to different economic situations. Russel made decisive contributions to understand some of these mechanisms. Nevertheless, a concern exists that due to their multiple equilibria, these models might not be falsified. Russel W. COOPER
presents various empirical examples to illustrate that during the last ten years progress has been made. It seems possible to draw some empirical knowledge from these estimation exercises. Notwithstanding, complete
empirical investigations of these models are rare because their estimating remains difficult and economists have to resort to simplifying assumptions or calibration approach to avoid these difficulties. In this comment, at the risk of
distortion, I will try to restate some of Russel W. COOPER’s points focusing on their statistical dimensions and emphasizing that recent progress in econometrics may help to tackle some of these issues