J. Stachurski

Stationary Distributions in

Monotone Mixing and Distribution Dynamics

Many economic applications establish stability of Markov dynamics using the monotone mixing condition (MMC) of Hopenhayn and Prescott (1992). Working in the same setting as that paper, we introduce a weak monotone mixing condition (WMMC), phrased in terms of the reversal of rank between populations, and show that it is...

FINANCING CONSTRAINTS, FIRM DYNAMICS, AND INTERNATIONAL TRADE ∗

Rare States and Long-Run Pricing

Macroeconomic crises are rare, yet they can have large effects on asset prices. Because the probability of entering a crisis from normal times is small relative to the probability of recovery, the dynamics are nearly reducible: setting the crisis-entry probability to zero makes crisis states unreachable from normal sta...