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- W2000476813 abstract "This paper considers the canonical stochastic growth model with CRRA utility and Cobb-Douglas technology. It obtains a closed-form solution for the case where capital's share is equal to the reciprocal of the intertemporal elasticity of substitution. This provides a useful benchmark that illuminates the transmission mechanism under uncertainty. In particular, it highlights the complicated ways in which risk and nonlinearities interact, via Jensen's inequality, to affect the steady state capital stock." @default.
- W2000476813 created "2016-06-24" @default.
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- W2000476813 date "2007-01-15" @default.
- W2000476813 modified "2023-10-18" @default.
- W2000476813 title "Inspecting the Mechanism Exactly: A Closed-form Solution to a Stochastic Growth Model" @default.
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- W2000476813 doi "https://doi.org/10.2202/1935-1690.1524" @default.
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