A ‘Dual’-Improved Shortcut to the Long Run
I use the theories of duality and optimal branchings to ﬁnd a necessary and suﬀicient characterization of stochastically stable limit sets (SSLS) that helps improve the radius — modiﬁed coradius test of Ellison (2000). The improved shortcut I oﬀer may permit the identiﬁcation of SSLS when Ellison’s radius — modiﬁed coradius test fails to identify any, or may be able to pinpoint the true SSLS in cases where Ellison’s test identiﬁes only a superset. I also demonstrate precisely why the radius — modiﬁed coradius test is not universally applicable and illuminate the connection between the modiﬁed coradius and the Lagrange multipliers of the optimal branching problem.
Rozen, Kareen, "A ‘Dual’-Improved Shortcut to the Long Run" (2008). Cowles Foundation Discussion Papers. 1944.