Random Fixed Points in a Stochastic Solow Growth Model
University of Applied Sciences Merseburg
Klaus Reiner Schenk-Hoppé
University of Leeds - Leeds University Business School; University of Leeds - School of Mathematics
Zurich IEER Working Paper No. 65
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.
Number of Pages in PDF File: 15
Keywords: Solow Growth Model; Random Dynamical Systems; Random Fixed Points; Ergodic Markov Equilibria
JEL Classification: C62, E13, O41working papers series
Date posted: February 7, 2001
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