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Seeking Ergodicity in Dynamic Economies

Listed author(s):
  • Takashi Kamihigashi

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • John Stachurski

    (Research School of Economics, Australian National University, Australia)

In estimation and calibration studies the concept of ergodicity plays a fundamental role. At the same time, a significant number of economic models do not satisfy the classical ergodicity conditions. Motivated by existing work on economic dynamics, we develop a new set of results on ergodicity using an ordertheoretic approach. Our conditions are necessary and sufficient, and, by varying the notion of order, can include the classical Markov ergodic theorem as a special case. We discuss implications, sufficient conditions and economic applications.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2014-22.pdf
File Function: First version, 2014
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Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2014-22.

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Length: 31 pages
Date of creation: May 2014
Handle: RePEc:kob:dpaper:dp2014-22
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