Advanced Search
MyIDEAS: Login to save this article or follow this journal

Random fixed points in a stochastic Solow growth model

Contents:

Author Info

  • Schenk-Hoppe, Klaus Reiner
  • Schmalfu[ss], Bjorn

Abstract

This paper presents a complete analysis of a stochastic version of the Solow growth model in which all parameters are ergodic random variables. Applying random dynamical systems theory, we prove that the dynamics and, in particular, the long-run behavior is uniquely determined by a globally attracting stable random fixed point. We also discuss the relation of our approach to that of ergodic Markov equilibria.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VBY-43HBYTB-2/2/e3a267872d2d58c986a4dd39e2e9afae
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 36 (2001)
Issue (Month): 1 (September)
Pages: 19-30

as in new window
Handle: RePEc:eee:mateco:v:36:y:2001:i:1:p:19-30

Contact details of provider:
Web page: http://www.elsevier.com/locate/jmateco

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Leonard J. Mirman & Klaus Reiner Schenk-Hoppé, . "Financial Markets and Stochastic Growth," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 066, Institute for Empirical Research in Economics - University of Zurich.
  2. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
  3. Armin Falk & Ernst Fehr & Urs Fischbacher, . "On the Nature of Fair Behavior," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 017, Institute for Empirical Research in Economics - University of Zurich.
  4. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001. "Appropriating the Commons - A Theoretical Explanation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2925, C.E.P.R. Discussion Papers.
  5. Bruno S. Frey & Alois Stutzer, . "Happiness, Economy and Institutions," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 015, Institute for Empirical Research in Economics - University of Zurich.
  6. Albrecht Ritschl & Ulrich Woitek, . "Did Monetary Forces Cause the Great Depression? A Bayesian VAR Analysis for the U.S. Economy," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 050, Institute for Empirical Research in Economics - University of Zurich.
  7. Bruno S. Frey & Marcel Kucher & Alois Stutzer, 1999. "Outcome, Process & Power in Direct Democracy," CESifo Working Paper Series, CESifo Group Munich 222, CESifo Group Munich.
  8. Carl Futia, 2010. "Invariant Distributions and the Limiting Behavior of Markovian Economic Models," Levine's Working Paper Archive 497, David K. Levine.
  9. Ambler, Steve & Paquet, Alain, 1994. "Stochastic Depreciation and the Business Cycle," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 101-16, February.
  10. Josef Zweimüller & Rudolf Winter-Ebmer, 2000. "Firm-specific training: Consequences for job mobility," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2000-06, Department of Economics, Johannes Kepler University Linz, Austria.
  11. Becker, Robert & Zilcha, Itzhak, 1997. "Stationary Ramsey Equilibria under Uncertainty," Journal of Economic Theory, Elsevier, Elsevier, vol. 75(1), pages 122-140, July.
  12. Simon Gächter & Armin Falk, . "Work motivation, institutions, and performance," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 062, Institute for Empirical Research in Economics - University of Zurich.
  13. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(3), pages 817-868, August.
  14. Lalive, Rafael & van Ours, Jan C. & Zweimüller, Josef, 2000. "The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment," IZA Discussion Papers 149, Institute for the Study of Labor (IZA).
  15. Futia, Carl A, 1982. "Invariant Distributions and the Limiting Behavior of Markovian Economic Models," Econometrica, Econometric Society, Econometric Society, vol. 50(2), pages 377-408, March.
  16. Josef Falkinger & Ernst Fehr & Simon Gaechter, . "A Simple Mechanism for the Efficient Provision of Public Goods - Experimental Evidence," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 003, Institute for Empirical Research in Economics - University of Zurich.
  17. Armin Falk & Ernst Fehr & Urs Fischbacher, . "Testing Theories of Fairness - Intentions Matter," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 063, Institute for Empirical Research in Economics - University of Zurich.
  18. Markus Knell, 1999. "Social Comparisons, Inequality, and Growth," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 155(4), pages 664-, December.
  19. Bruno S. Frey & Alois Stutzer, 2000. "Maximising Happiness?," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 1(2), pages 145-167, 05.
  20. Ernst Fehr & Jean-Robert Tyran, 2001. "Does Money Illusion Matter?," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1239-1262, December.
  21. Duffie, Darrell, et al, 1994. "Stationary Markov Equilibria," Econometrica, Econometric Society, Econometric Society, vol. 62(4), pages 745-81, July.
  22. Bruno S. Frey & Reto Jegen, 2000. "Motivation Crowding Theory: A Survey of Empirical Evidence," CESifo Working Paper Series, CESifo Group Munich 245, CESifo Group Munich.
  23. Bruno S. Frey & Reiner Eichenberger, . "A Proposal for a Flexible Europe," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 056, Institute for Empirical Research in Economics - University of Zurich.
  24. Iris Bohnet & Bruno S. Frey & Steffen Huck, . "More Order with Less Law: On Contract Enforcement, Trust, and Crowding," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 052, Institute for Empirical Research in Economics - University of Zurich.
  25. Bruno S. Frey & Lorenz Goette, . "Does Pay Motivate Volunteers?," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 007, Institute for Empirical Research in Economics - University of Zurich.
  26. Mirman, Leonard J, 1972. "On the Existence of Steady State Measures for One Sector Growth Models with Uncertain Technology," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(2), pages 271-86, June.
  27. Mirman, Leonard J., 1973. "The steady state behavior of a class of one sector growth models with uncertain technology," Journal of Economic Theory, Elsevier, Elsevier, vol. 6(3), pages 219-242, June.
  28. Bruno S. Frey & Reto Jegen, . "Motivation Crowding Theory: A Survey Of Empirical Evidence, Revised Version," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 049, Institute for Empirical Research in Economics - University of Zurich.
  29. Binder, Michael & Pesaran, M Hashem, 1999. " Stochastic Growth Models and Their Econometric Implications," Journal of Economic Growth, Springer, Springer, vol. 4(2), pages 139-83, June.
  30. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 15(5), pages 589-611, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Klaus Reiner Schenk-Hoppé, . "Random Dynamical Systems in Economics," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 067, Institute for Empirical Research in Economics - University of Zurich.
  2. Manuel S. Santos & Adrian Peralta-Alva, 2012. "Analysis of Numerical Errors," Working Papers, University of Miami, Department of Economics 2012-6, University of Miami, Department of Economics.
  3. Manuel S. Santos & Adrian Peralta-Alva, 2003. "Accuracy Of Simulations For Stochastic Dynamic Models," Economics Working Papers, Universidad Carlos III, Departamento de Economía we034615, Universidad Carlos III, Departamento de Economía.
  4. Electra Petracou & Anastasios Xepapadeas & Athanasios Yannacopoulos, . "The bioeconomics of migration: A selective review towards a modelling perspective," DEOS Working Papers, Athens University of Economics and Business 1306, Athens University of Economics and Business.
  5. Jan PALCZEWSKI & Klaus Reiner SCHENK-HOPPE, 2008. "Market Selection of Constant Proportions Investment Strategies in Continuous Time," Swiss Finance Institute Research Paper Series, Swiss Finance Institute 08-29, Swiss Finance Institute.
  6. Klaus Reiner Schenk-Hoppé, 2002. "Poverty Traps and Business Cycles in a Stochastic Overlapping Generations Economy with S-shaped Law of Motion," Discussion Papers, University of Copenhagen. Department of Economics 02-13, University of Copenhagen. Department of Economics.
  7. Manuel S. Santos, 2003. "Simulation-Based Estimation Of Dynamic Models With Continuous Equilibrium Solutions," Economics Working Papers, Universidad Carlos III, Departamento de Economía we034716, Universidad Carlos III, Departamento de Economía.
  8. Jesús Fernández-Villaverde & Juan F. Rubio-Ramirez & Manuel Santos, 2005. "Convergence Properties of the Likelihood of Computed Dynamic Models," Levine's Bibliography 122247000000000822, UCLA Department of Economics.
  9. Santos, Manuel S., 2004. "Simulation-based estimation of dynamic models with continuous equilibrium solutions," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 40(3-4), pages 465-491, June.
  10. Klaus Reiner Schenk-Hoppé, . "Sample-Path Stability of Non-Stationary Dynamic Economic Systems," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 046, Institute for Empirical Research in Economics - University of Zurich.
  11. repec:ebl:ecbull:v:3:y:2008:i:41:p:1-14 is not listed on IDEAS

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:36:y:2001:i:1:p:19-30. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.