In the literature on price characterization of optimal paths in stationary models of optimal growth, distinct “transversality conditions” have been presented, depending on whether or not utilities are discounted. In the discounted case, this condition takes the form that asymptotically the...

This paper describes conditions under which one investment project dominates a second project in terms of net present value, irrespective of the choice of the discount rate. The resulting partial ordering of projects has certain similarities to stochastic dominance. However, the structure of the...

We study a one-sector stochastic optimal growth model where production is affected by a shock taking one of two values. Such exogenous shock may enter multiplicatively or additively. A result is presented which provides sufficient conditions to ensure that the attractor of the iterated function...

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>