Stochastic shocks in a two-sector Solow model (Q1934494): Difference between revisions
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Latest revision as of 06:15, 5 March 2024
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Stochastic shocks in a two-sector Solow model |
scientific article |
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Stochastic shocks in a two-sector Solow model (English)
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28 January 2013
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Summary: We study a stochastic, discrete-time, two-sector growth model à la Solow (1956) characterised by perpetual growth. Assuming that exogenous i.i.d. shocks hit the physical production sector, we show that the capital dynamics can be converted, through an appropriate log-transformation, into an iterated function system converging to an invariant distribution supported on a Cantor set.
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fractals
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iterated function system
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Cantor set
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stochastic growth
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stochastic shocks
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two-sector Solow model
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capital dynamics
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invariant distribution
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