Title
Seeking Ergodicity in Dynamic Economies
Abstract
In estimation and calibration studies the concept of ergodicity plays a fundamental role. At the same time, a significant number of economic models do not satisfy the classical ergodicity conditions. Motivated by existing work on economic dynamics, we develop a new set of results on ergodicity using an ordertheoretic approach. Our conditions are necessary and sufficient, and, by varying the notion of order, can include the classical Markov ergodic theorem as a special case. We discuss implications, sufficient conditions and economic applications.
Keywords
Ergodicity, Consistency, Calibration
JEL Classification
C62, C63
Inquiries
Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059
John STACHURSKI
Research School of Economics, Australian National University