Existence and uniqueness of equilibrium in distorted dynamic economies with capital and labor (Q1601453): Difference between revisions

An infinite horizon stochastic growth model with a continuum of infinitely-lived and identical agents is considered (cf. [\textit{W. Brock} and \textit{L. J. Mirman}, ``Optimal growth and uncertainty: the discounted case'', J. Econ. Theory 4, 429--513 (1972)]. The main result provides sufficient conditions for the existence of a recursive competitive equilibrium.