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Log-Linearization of Perturbed Dynamical Systems, With Applications to Optimal Growth

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  • Stachurski, J.

Abstract

It is common to study the asymptotic properties of log-linear stochastic systems by analyzing the behaviour of their linear counterparts. In this paper a formal justification for analysis by log-linearization is given. As an application, a new existence, uniqueness and stability condition is derived for equilibria in a standard class of multisector growth models with stochastic production. The condition can be seen as a generalization of existing equilibrium conditions for this class of models.

Suggested Citation

  • Stachurski, J., 2001. "Log-Linearization of Perturbed Dynamical Systems, With Applications to Optimal Growth," Department of Economics - Working Papers Series 788, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:788
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-00-01/788.pdf
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    References listed on IDEAS

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    Cited by:

    1. John Stachurski, 2003. "Stochastic growth: asymptotic distributions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 21(4), pages 913-919, June.

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    More about this item

    Keywords

    BEHAVIOUR ; GROWTH MODELS ; PRODUCTION;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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