Seeking Ergodicity in Dynamic Economies
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.
Ergodicity, Consistency, Calibration
Research Institute for Economics and Business Administration,
Rokkodai-cho, Nada-ku, Kobe
Research School of Economics, Australian National University