Chatterjee, Partha; Shukayev, Malik - In: Journal of Economic Dynamics and Control 32 (2008) 7, pp. 2137-2147
In the context of the classical stochastic growth model, we provide a simple proof that the optimal capital sequence is strictly bounded away from zero whenever the initial capital is strictly positive. We assume that the utility function is bounded below and the shocks affecting output are...