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Creator
Prescott, Edward C.
Remove constraint Creator: Prescott, Edward C.
Subject (JEL)
C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Remove constraint Subject (JEL): C61 - Optimization Techniques; Programming Models; Dynamic Analysis
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Creator: Hopenhayn, Hugo Andres and Prescott, Edward C. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 374 Abstract: The existence of fixed points for monotone maps on spaces of measures is established. The case of monotone Markov processes is analyzed and a uniqueness and global stability condition is developed. A comparative statics result is presented and the problem of approximation to the invariant distribution is discussed. The conditions of the theorems are verified for the cases of Optimal Stochastic Growth and Industry Equilibrium.
Keyword: Stochastic dynamic programming, Stochastic growth theory, Monotone functions, Investment theory, Stationay distributions, and Fixed points Subject (JEL): C61 - Optimization Techniques; Programming Models; Dynamic Analysis