Comparative statics in dynamic stochastic models. Differential analysis of a stochastic modified golden rule state in a Banach space (Q909566)
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English | Comparative statics in dynamic stochastic models. Differential analysis of a stochastic modified golden rule state in a Banach space |
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Comparative statics in dynamic stochastic models. Differential analysis of a stochastic modified golden rule state in a Banach space (English)
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1989
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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.
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comparative statics
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dynamic stochastic optimization
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Banach space
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expected utility function
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capital accumulation
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stochastic modified golden rule
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