This paper studies the global dynamics of a class of infinitely repeated two-player games in which the action space of each player is an interval, and the one-shot payoff of each player is additively separable in their actions. We define an immediately reactive equilibrium (IRE) as a...

This paper considers the resource constraint commonly used in stochastic one-sector growth models. Shocks are not required to be i.i.d. It is shown that any feasible path converges to zero exponentially fast almost surely under a certain condition. In the case of multiplicative shocks, the...

This paper shows that the standard transversality condition (STVC) is necessary for optimality for stochastic models with bounded or constant-relative-risk-aversion (CRRA) utility under fairly general conditions. We consider an infinite-horizon stochastic maximization problem that takes a...

This paper analyzes the nature of economic dynamics in a one-sector optimal growth model in which the technology is generally nonconvex, nondifferentiable, and discontinuous. The model also allows for irreversible investment and unbounded growth. We provide sufficient conditions for boundedness,...

This paper shows that the standard transversality condition (STVC) is nec-essary for optimality in stochastic models with bounded or constant-relative-risk- aversion (CRRA) utility under fairly general conditions. We consider an infinite-horizon stochastic maximization problem that takes a...

This paper shows stochastic versions of (i) Michel's (1990, Econometrica 58, 705--723, Theorem 1) necessity result , (ii) a generalization of the TVC results of Weitzman (1973, Manage. Sci. 19, 783--789) and Ekeland and Scheinkman (1986, Math. Oper. Res. 11, 216--229), and (iii) Kamihigashi's...

This paper studies a one-sector stochastic optimal growth model with i.i.d. productivity shocks in which utility is allowed to be bounded or unbounded, the shocks are allowed to be bounded or unbounded, and the production function is not required to satisfy the Inada conditions at zero and...

This paper analyzes the nature of economic dynamics in a one-sector optimal growth model in which the technology is generally nonconvex, nondifferentiable, and discontinuous. The model also allows for irreversible investment and unbounded growth. We develop various tools to overcome the...

This paper studies a class of infinitely repeated games with two players in which the action space of each player is an interval, and the one-shot payoff of each player is additively separable in their actions. We define an immediately reactive equilibrium (IRE) as a pure-strategy subgame...

This paper shows that the standard transversality condition (STVC) is necessary for optimality for stochastic models with constant-relative-risk-aversion (CRRA) utility under general conditions. We consider an infinite-horizon stochastic maximization problem that takes a general form of...