Using Single-Interest-Rate Analysis, Reswitching Is a Fact, BUT Using Multiple-Interest-Rate Analysis, Reswitching Is a Chimera

The present values of the two income streams never cross and therefore, in the Fisher model, there is neither switching nor reswitching when the interest rate variable is redefined to include all the simultaneously determined interest rates previously thought devoid of economic significance, and the dual expression applies. Seen through the spectacles of single-interest-rate analysis, reswitching is a theoretical and empirical fact. Seen through the alternative spectacles of multiple-interest-rate analysis, reswitching is a chimera.

--Michael J. Osborne, Multiple Interest Rate Analysis: Theory and Applications (Houndmills, UK: Palgrave Macmillan, 2014), 99.