| Author: | Nyarko, Y. Olson, L. |
| Title: | Stochastic growth when utility depends on both consumption and the stock level |
| Journal: | Economic Theory
1994 : VOL. 4:5, p. 791-797 |
| Index terms: | RESEARCH ECONOMIC THEORY CONSUMPTION |
| Language: | eng |
| Abstract: | This paper examines the dynamic of optimal consumption and investment policies in the aggregate stochastic growth model when utility depends on both consumption and the stock level. Such models arise in the study of renewable resources, monetary growth, and growth with public capital. The paper shows that there is a global convergence of optimal policies to a unique stationary distribution if there is sufficient complementary in the model. |
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