کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
956910 928497 2012 31 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Sustained positive consumption in a model of stochastic growth: The role of risk aversion
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Sustained positive consumption in a model of stochastic growth: The role of risk aversion
چکیده انگلیسی

In a stochastic economy, long run consumption and output may not be bounded away from zero even when productivity is arbitrarily high near zero and uncertainty is arbitrarily small. In the one-sector stochastic optimal growth model with i.i.d. production shocks, we characterize the nature of preferences that lead to this phenomenon for a stochastic Cobb–Douglas technology. For the general version of the model, we outline sufficient conditions under which the economy expands its capital stock near zero and long run consumption is bounded away from zero with certainty. Our conditions highlight the important role played by risk aversion for small consumption levels.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Economic Theory - Volume 147, Issue 2, March 2012, Pages 850–880
نویسندگان
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