Ergodic Chaos in Optimal Growth Models with Low Discount Rates.

B-Tier
Journal: Economic Theory
Year: 1994
Volume: 4
Issue: 5
Pages: 705-17

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that for every discount factor rho epsilon(O,1) one can find infinitely many strictly concave discrete-time optimal growth models in reduced form which have optimal policy functions exhibiting ergodic chaos. These reduced form models are interpreted in a two-sector optimal growth setting with utility functions depending on consumption as well as on capital.

Technical Details

RePEc Handle
repec:spr:joecth:v:4:y:1994:i:5:p:705-17
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26