Cantor Type Attractors in Stochastic Growth Models

Tapan Mitra and Fabio Privileggi

POLIS Working Papers from Institute of Public Policy and Public Choice - POLIS

Abstract: We study a one-sector stochastic optimal growth model where production is affected by a shock taking one of two values. Such exogenous shock may enter multiplicatively or additively. A result is presented which provides sufficient conditions to ensure that the attractor of the iterated function system (IFS) representing the optimal policy, is a generalized topological Cantor set. To indicate the role of the strict monotonicity condition on the IFS in this result, examples of attractors, which are not of the Cantor type, are constructed with iterated function systems, whose maps are contractions and satisfy a no overlap property.

JEL-codes: C61 O41 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2005-02
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Cantor type attractors in stochastic growth models (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:uca:ucapdv:43

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