Efficiency and optimality in stochastic models with production

Article Abstract:

The efficient allocations for a dynamic stochastic model in optimal growth and in overlapping generations is portrayed. A central planner's optimization problem is solved by usng a stochastic version of Pontryagin's maximum principle. An approximation method is employed to extend the stochastic maximum principle to an infinite horizon derived by Arkin and Evstigneev. An economic interpretation is presented after obtaining efficiency conditions.

Learning models (Stochastic processes), Uncertainty, Stochastic models

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Another look at sticky prices and output persistence

Article Abstract:

Using New-Keynesian models, the impact of prices that adjust slowly in response to market shortages or surpluses on the production of goods in a business cycle is studied.

United States, Models, Price gouging, Keynesian economics

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A clarification of the Goodwin model of the growth cycle

Article Abstract:

The redevelopment of the Goodwin model of business cycle to limit variables like labor share that exceed unity is discussed.

United Kingdom, Business, Business models, Labor costs, Labour costs

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