Abstract.
This paper develops a discretized version of a stochastic model of the economic growth and studies its convergence and stability properties. A nonlinear model of the economic growth, which involves the production, technology stock, and their rates as the main variables, is considered. We analyze the case where the production function does not satisfy the Inada conditions and we show that, in this case, a sufficient condition for the existence of a unique steady state is that the marginal utility function should possess a horizontal and vertical asymptotic elasticity.
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2000 Mathematics Subject Classification. 37A50, 37H05, 37N40, 90B05, 90C39.
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Carpio, L. A Qualitative Approach to Markovian Equilibrium on Optimal Growth Under Uncertainty. J Dyn Control Syst 12, 451–464 (2006). https://doi.org/10.1007/s10883-006-0001-2
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DOI: https://doi.org/10.1007/s10883-006-0001-2