Salyer, Kevin D.; Slotsve, George A. - In: Canadian Journal of Economics 26 (1993) 2, pp. 392-416
Within the context of a stochastic growth economy, the shocks to technology are modeled as a four-state Markov process. The parameters of this process are chosen so that the implied conditional distributions for the marginal product of capital can be ordered in terms of first- and second-order...