This paper provides a turnpike-like theorem for multidimensional, optimal-growth models, which holds for evey level of the discount factor. It is shown that when the short-run return fu nction of the reduced-form model satisfies a certain sufficient condi tion, then the resulting dynamics is of...

In recent years economists have begun to use the techniques of non-linear dynamics to show that some apparently erratic and turbulent economic phenomena reflect subtle underlying patterns. How do cyclic and chaotic dynamics arise in economic models of equilibrium? How can empirical methods be...

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>