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Existence and Uniqueness of a Fixed Point for Local Contractions |
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| Authors: | V Filipe Martins‐da‐Rocha Yiannis Vailakis |
| Abstract: | This paper proves the existence and uniqueness of a fixed point for local contractions without assuming the family of contraction coefficients to be uniformly bounded away from 1. More importantly it shows how this fixed‐point result can apply to study the existence and uniqueness of solutions to some recursive equations that arise in economic dynamics. |
| Keywords: | Fixed‐point theorem local contraction Bellman operator Koopmans operator Thompson aggregator recursive utility |