Stochastic shocks in a two-sector Solow model Online publication date: Sat, 30-Aug-2014
by Simone Marsiglio
International Journal of Mathematical Modelling and Numerical Optimisation (IJMMNO), Vol. 3, No. 4, 2012
Abstract: We study a stochastic, discrete-time, two-sector growth model à la Solow (1956) characterised by perpetual growth. Assuming that exogenous i.i.d. shocks hit the physical production sector, we show that the capital dynamics can be converted, through an appropriate log-transformation, into an iterated function system converging to an invariant distribution supported on a Cantor set.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Mathematical Modelling and Numerical Optimisation (IJMMNO):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com