Stochastic Monotonicity and Stationary Distributions for Dynamic Economies

DOI10.2307/2951526zbMath0766.90017OpenAlexW1983941522MaRDI QIDQ4016186

Edward C. Prescott, Hugo A. Hopenhayn

Publication date: 9 December 1992

Published in: Econometrica (Search for Journal in Brave)

Full work available at URL: https://semanticscholar.org/paper/aafe78ccbef550faf99c43a891143d4514d868d5

zbMATH Keywords

fixed pointsupermodular functionsinvestmentstochastic growthstochastic dynamic optimizationmonotone Markov processstochastically monotone processesexistence and stability of invariant distributionsindustry equilibrium dynamics

Mathematics Subject Classification ID

Economic growth models (91B62) Markov and semi-Markov decision processes (90C40) Stochastic systems in control theory (general) (93E03)

Related Items

On learning and growth ⋮ Simulation-based estimation of dynamic models with continuous equilibrium solutions ⋮ Seeking ergodicity in dynamic economies ⋮ The effect of interest rates on consumption in an income fluctuation problem ⋮ Can technical change exacerbate the effects of labor market sclerosis? ⋮ Note on positive lower bound of capital in the stochastic growth model ⋮ COMPARATIVE DYNAMICS IN STOCHASTIC MODELS WITH RESPECT TO THEL^∞–L^∞DUALITY: A DIFFERENTIAL APPROACH ⋮ Markovian equilibrium in infinite horizon economies with incomplete markets and public policy ⋮ Recursive utility and optimal growth under uncertainty ⋮ A generalized model of commitment ⋮ NIT picking: the macroeconomic effects of a negative income tax ⋮ Dynamic monotonicity and comparative statics for real options ⋮ Stochastic optimal growth with a non-compact state space ⋮ Uniqueness of equilibrium in a Bewley-Aiyagari model ⋮ A new look at optimal growth under uncertainty ⋮ Economic dynamical systems with multiplicative noise. ⋮ Markov distributional equilibrium dynamics in games with complementarities and no aggregate risk ⋮ A theory of progressive lending ⋮ The random two-sector RSS model: on discounted optimal growth without Ramsey-Euler conditions ⋮ Stochastic stability of monotone economies in regenerative environments ⋮ A nonsmooth approach to envelope theorems ⋮ An order-theoretic mixing condition for monotone Markov chains ⋮ Stochastic growth, conservation of capital and convergence to a positive steady state ⋮ Limit theorems for monotone Markov processes ⋮ Estimation by simulation of monotone dynamical systems ⋮ A stochastic dynamic model of trade and growth: convergence and diversification ⋮ Computing minimal state space recursive equilibrium in OLG models with stochastic production ⋮ On stationary recursive equilibria and nondegenerate state spaces: the Huggett model ⋮ Stochastic optimal growth with risky labor supply ⋮ On the consistency of stationary Markov equilibria with an exogenous distribution. ⋮ A weakly monotonic backward induction algorithm on finite bounded subsets of vector lattices. ⋮ Computing general equilibrium models with occupational choice and financial frictions ⋮ Unique monetary equilibrium with inflation in a stationary Bewley-Aiyagari model ⋮ Stationary anonymous sequential games with undiscounted rewards ⋮ Martingale analysis of dynamic tax incidence in a nonstationary growth model ⋮ Recursive utility, martingales, and the asymptotic behaviour of optimal processes ⋮ Stationary Markovian equilibrium in overlapping generation models with stochastic nonclassical production and Markov shocks ⋮ On environmental Kuznets curves arising from stock externalities ⋮ Generalized envelope theorems: applications to dynamic programming ⋮ A qualitative approach to Markovian equilibrium in infinite horizon economies with capital ⋮ Exit, selection, and the value of firms ⋮ Industrial subsidies and technology adoption in general equilibrium ⋮ Dynamic efficiency of conservation of renewable resources under uncertainty. ⋮ The dynamics of bidding markets with financial constraints ⋮ On a class of stable random dynamical systems: Theory and applications ⋮ Mixed equilibria are unstable in games of strategic complements ⋮ Consistency properties of a simulation-based estimator for dynamic processes ⋮ Monotonic robust optimal control policies for the time-quality trade-offs in concurrent new product development (NPD) ⋮ Stability of stochastic optimal growth models: a new approach ⋮ Almost sure convergence to zero in stochastic growth models ⋮ The invariant distribution of wealth and employment status in a small open economy with precautionary savings ⋮ Tests of stochastic monotonicity with improved power ⋮ A unified stability theory for classical and monotone Markov chains ⋮ Stochastic optimal policies when the discount rate vanishes ⋮ RANDOM DYNAMICAL SYSTEMS IN ECONOMICS ⋮ Special issue: Supermodularity and monotone methods in economics ⋮ Stochastic Comparative Statics in Markov Decision Processes ⋮ Long-sighted principal and myopic agents ⋮ DO FIRING COSTS AFFECT THE INCIDENCE OF FIRM BANKRUPTCY? ⋮ Stochastic optimal growth with unbounded shock ⋮ Solving nonstationary infinite horizon stochastic production planning problems ⋮ Log-linearization of stochastic economic models† ⋮ Existence of stationary Markov perfect equilibria in stochastic altruistic growth economies ⋮ Existence and uniqueness of equilibrium in distorted dynamic economies with capital and labor ⋮ Comparative dynamics of fixed versus flexible discount rate growth models ⋮ Differential information in large games with strategic complementarities ⋮ Extension of Monotonic Functions and Representation of Preferences ⋮ Mean Field Equilibrium: Uniqueness, Existence, and Comparative Statics