Mitra, Tapan; Montrucchio, Luigi; Privileggi, Fabio - In: Economic Theory 23 (2003) 1, pp. 39-71
We study a one-sector stochastic optimal growth model with a representative agent. Utility is logarithmic and the production function is of the Cobb-Douglas form with capital exponent <InlineEquation ID="Equ1"> <EquationSource Format="TEX">$\alpha $</EquationSource> </InlineEquation>. Production is affected by a multiplicative shock taking one of two values with positive...</equationsource></inlineequation>
