Stochastic Optimal Growth with Unbounded Shock

This page collects files for the paper Stochastic Optimal Growth with Unbounded Shock, which was written as part of my PhD thesis.

Publication Details

Stochastic Optimal Growth with Unbounded Shock

John Stachurski

Journal of Economic Theory, 106 (1), 40--65, 2002

Abstract

This paper considers a neoclassical optimal growth problem where the shock that perturbs the economy in each time period is potentially unbounded on the state space. Sufficient conditions for existence, uniqueness and stability of equilibria are derived in terms of the primitives of the model using recent techniques from the field of perturbed dynamical systems.