Stochastic optimal policies when the discount rate vanishes
AbstractDutta (J. Econom. Theory, 1991, 55, 64?94) showed that long-run optimality of the limit of discounted optima when the discount rate vanishes is implied by a certain bound on the value function of the optimal program. We introduce a new method to verify this bound using coupling techniques.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 31 (2007)
Issue (Month): 4 (April)
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Web page: http://www.elsevier.com/locate/jedc
Other versions of this item:
- Kazuo Nishimura & John Stachurski, 2006. "Stochastic Optimal Policies When the Discout Rate Vanishes," KIER Working Papers 617, Kyoto University, Institute of Economic Research.
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- Mirman, Leonard J. & Morand, Olivier F. & Reffett, Kevin L., 2008.
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- Nishimura, Kazuo & Stachurski, John, 2005. "Stability of stochastic optimal growth models: a new approach," Journal of Economic Theory, Elsevier, vol. 122(1), pages 100-118, May.
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