Journal
JOURNAL OF MATHEMATICAL ECONOMICS
Volume 46, Issue 4, Pages 505-518Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.jmateco.2010.03.004
Keywords
Stochastic growth; Social-status concern; Multiple equilibria; Invariant distribution
Categories
Funding
- National Science Foundation for Distinguished Young Scholars [70725006]
Ask authors/readers for more resources
This paper extends Kurz's (1968) growth model to a stochastic growth framework with social-status concern and unbounded production shocks. Using the stochastic monotonicity of a stochastic dynamic system and the methods adopted in Zhang (2007), the existence, uniqueness, and stability of invariant distribution are investigated. Different from the existence of multiple steady states under certainty, it is shown here that there exists a unique stable invariant distribution under uncertainty. (C) 2010 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available