Abstract
Random dynamical systems are useful in modeling the evolution of economic processes subject to exogenous shocks. One obtains strong results on the existence, uniqueness, stability of the invariant distribution of such systems when an appropriate splitting condition is satisfied. Also of importance has been the study of random iterates of maps from the quadratic family. Applications to economic growth models are reviewed.
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Majumdar, M. (2005). Random Dynamical Systems in Economics. In: Waymire, E.C., Duan, J. (eds) Probability and Partial Differential Equations in Modern Applied Mathematics. The IMA Volumes in Mathematics and its Applications, vol 140. Springer, New York, NY. https://doi.org/10.1007/978-0-387-29371-4_12
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DOI: https://doi.org/10.1007/978-0-387-29371-4_12
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