Wu, F. and Mao, X. and Yin, J. (2008) Uncertainty and economic growth in a stochastic R&D model. Economic Modelling, 25 (6). pp. 13061317. ISSN 02649993

PDF (168_EcoMod_Mao.pdf)
168_EcoMod_Mao.pdf Download (183kB)  Preview 
Abstract
The paper examines an R&D model with uncertainty from the population growth, which is a stochastic cooperative LotkaVolterra system, and obtains a suciently condition for the existence of the globally positive solution. The longrun growth rate of the economic system is ultimately bounded in mean and fluctuation of its growth will not be faster than the polynomial growth. When uncertainty of the population growth, in comparison with its expectation, is suciently large, the growth rate of the technological progress and the capital accumulation will converge to zero. Inversely, when uncertainty of the population growth is suciently small or its expected growth rate is suciently high, the economic growth rate will not decay faster than the polyno mial speed. The paper explicitly computes the sample average of the growth rates of both the technology and the capital accumulation in time and compares them with their counterparts in the corresponding deterministic model.
Item type:  Article 

ID code:  13887 
Keywords:  volterra system, brownian motion, R&D model, polynomial growth, stochastic differential equation, Ito formula, Mathematics, Economics and Econometrics 
Subjects:  Science > Mathematics 
Department:  Faculty of Science > Mathematics and Statistics 
Depositing user:  Mrs Carolynne Westwood 
Date Deposited:  16 Dec 2009 13:49 
Last modified:  17 Jun 2015 20:16 
URI:  http://strathprints.strath.ac.uk/id/eprint/13887 
Actions (login required)
View Item 