Boucekkine, Raouf; Zou, Benteng - Centre de Recherche en Économie Appliquée (CREA), … - 2014
This note studies the stochastic stability of the standard AK growth model un- der uncertain output technology. Capital accumulation follows a stochastic lin- ear homogenous differential equation. It’s shown that exponential balanced paths, which characterize optimal trajectories in the...