Stochastic Stability of Monotone Economies in Regenerative Environments

Abstract

We introduce and analyze a new class of monotone stochastic recursions in a regenerative environment which is essentially broader than that of Markov chains. We prove stability theorems and apply our results {to three canonical models in recursive economics}, generalizing some known stability results to the cases when driving sequences are not independent and identically distributed.

25 pages

Cited by in corpus (4)

• Stochastic monotonicity and the Markov product for copulas
• Convergence of Markov chain transition probabilities
• Intergenerational Insurance
• Limit theorems and structural properties of the Cat-and-Mouse Markov chain