Random Fixed Points in a Stochastic Solow Growth Model

Klaus Reiner Schenk-Hoppé () and Björn Schmalfuss

No iewwp065, IEW - Working Papers from Institute for Empirical Research in Economics - IEW

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.

Keywords: Solow growth model; random dynamical systems; random fixed points; ergodic Markov equilibria (search for similar items in EconPapers)
JEL-codes: C62 E13 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
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Related works:
Journal Article: Random fixed points in a stochastic Solow growth model (2001)
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