Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10474853 | Journal of Economic Theory | 2005 | 19 Pages |
Abstract
The paper proposes an Euler equation technique for analyzing the stability of differentiable stochastic programs. The main innovation is to use marginal reward directly as a Foster-Lyapunov function. This allows us to extend known stability results for stochastic optimal growth models, both weakening hypotheses and strengthening conclusions.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kazuo Nishimura, John Stachurski,