Comparative statics in dynamic stochastic models. Differential analysis of a stochastic modified golden rule state in a Banach space (Q909566)

The present paper applies a sort of comparative statics method to the study of stochastic models by viewing a dynamic stochastic optimization problem as a deterministic one in a Banach space which is equivalent in a certain sense. In this framework certain difficulties concerning the lack of appropriate continuity of the corresponding expected utility function are avoided. This allows the author to prove that a feasible contingent capital accumulation path which is stationary generates a stochastic modified golden rule state provided it is one in the deterministic sense.