Munich Personal RePEc Archive

Comparative Studies on Cooperative Stochastic Differential Game and Dynamic Sequential Game of Economic Maturity

Dai, Darong (2012): Comparative Studies on Cooperative Stochastic Differential Game and Dynamic Sequential Game of Economic Maturity.

[img]
Preview
PDF
MPRA_paper_44339.pdf

Download (415kB) | Preview

Abstract

In the paper, we are encouraged to investigate the effect of game structure imposed on the minimum-time needed to economic maturity in a dynamic macroeconomic model. Indeed, we have established a basic framework for the comparative study of the cooperative stochastic differential game and dynamic sequential game of economic maturity. Moreover, in a simple stochastic growth model, closed-form solution of the minimum-time needed to economic maturity has been derived with the explicit condition, under which it is confirmed that cooperation between the representative household and the self-interested politician will definitely lead us to much faster economic maturity than that of sequential action, supplied, too. Finally, our model supports the comparative study of the minimum-time needed to economic maturity under different political- institution constraints.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.