Stochastic growth with increasing returns: Stability and path dependence

John Stachurski*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


The paper demonstrates global stability in a class of stochastic overlapping generations economies with increasing returns. These results are applied to the study of path dependent dynamics. In particular, for nonlinear stochastic models it is seen that persistence of the historical state and formal ergodicity may easily coincide. A new definition of path dependence is proposed that incorporates such dynamics.

Original languageEnglish
Article number1
JournalStudies in Nonlinear Dynamics and Econometrics
Issue number2
Publication statusPublished - 2003
Externally publishedYes


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