Stability of stochastic optimal growth models: a new approach
نویسندگان
چکیده
The paper proposes an Euler equation technique for analyzing the stability of differentiable stochastic programs. The main innovation is to use marginal reward directly as a Foster–Lyapunov function. This allows us to extend known stability results for stochastic optimal growth models, both weakening hypotheses and strengthening conclusions. JEL classification: C61; C62; O41
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ورودعنوان ژورنال:
- J. Economic Theory
دوره 122 شماره
صفحات -
تاریخ انتشار 2005