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Stability of Stationary Distributions in Monotone Economies

  • Takashi Kamihigashi


  • John Stachurski


This paper generalizes the sufficient conditions for stability of monotone economies and time series models due to Hopenhayn and Prescott (Econometrica, 60, p. 1387–1406, 1992). We introduce a new order-theoretic mixing condition and characterize stability for monotone economies satisfying this condition. We also provide a range of results that can be used to verify our mixing condition in applications, as well as the other components of our main stability theorem. Through this approach, we extend Hopenhayn and Prescott’s method to a significantly larger class of problems, and develop new perspectives on the causes of instability and stability.

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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2011-561.

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Length: 38 Pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:acb:cbeeco:2011-561
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