GROPING FOR OPTIMAL-GROWTH

The main objects here are nonlinear dynamic systems, stemming from sto chastic models of economic growth. The issue is whether and how agents can identify their best behavior in the long run, knowing neither the system dynamics nor the exact law of the random variables. To come to grips with this problem we model a process of adaptive adjustments, a nd provide reasonable conditions under which the resulting tatonnement converges to optimal behavior. (C) 1998 Elsevier Science B.V. All rig hts reserved.