Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 1981, Volume 49, Issue 4

Stochastic Properties of Fast vs. Slow Growing Economies

https://www.jstor.org/stable/1912515
p. 1007-1033

Jean-Pierre Danthine, John B. Donaldson

This paper is concerned with characterizing the probability distributions that describe the (stochastic) stationary state of a neoclassical model of optimal growth. In particular, using both theoretical analysis and numerical simulation, we search for systematic relationships between savings (and investment) rates and variability of the economy's aggregates.


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