Stochastic shocks in a two-sector Solow model (Q1934494)

From MaRDI portal
scientific article
Language Label Description Also known as
English
Stochastic shocks in a two-sector Solow model
scientific article

    Statements

    Stochastic shocks in a two-sector Solow model (English)
    0 references
    0 references
    28 January 2013
    0 references
    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.
    0 references
    fractals
    0 references
    iterated function system
    0 references
    Cantor set
    0 references
    stochastic growth
    0 references
    stochastic shocks
    0 references
    two-sector Solow model
    0 references
    capital dynamics
    0 references
    invariant distribution
    0 references

    Identifiers