Strategic Complementarity and Persistence in Linear-Quadratic Mean Field Games -- by Fernando E. Alvarez, David Argente

A first version of the project was joint with Thomas J. Sargent. We thank him for his guidance and insights during the early stages of the project. The remaining shortcomings are all ours. We thank Manuel Amador, David Baqaee, Saki Bigio, Patrick Kehoe, Ricardo Lagos, Francesco Lippi, Guido Lorenzoni, Guido Menzio, Ben Moll, Simon Mongey, Ezra Oberfield, Diego Perez, Chris Phelan, Rob Shimer, Takis Souganidis, Venky Venkateswaran, and Iván Werning for helpful comments and suggestions, as well as participants at SED 2024 in Buenos Aires, the Minneapolis Fed Research Department, the Cowles Foundation Macro Conference, the Mean Field Games and Mean Field Control in Economics conference in Paris, the Minnesota Macro Conference, and the Mean Field Seminar at NYU. We also thank Jonathan Adams for comments that materially changed the paper. First draft: October 2024. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

I have visited, taught, or consulted for the following institutions, where I have received an honorarium and/or paid traveling/lodging expenses:

EIEF, Rome, Italy. As research visitor.

University Torcuato Di Tella, Buenos Aires, Argentina, as a visiting professor.

Federal Reserve Bank of Chicago, US. As consultant to the Research Department.

Federal Reserve Bank of Minneapolis, US. As consultant to the Research Department.

Gerzensee’s Swiss Program for Doctoral Students, Switzerland. As a visiting professor.