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 existence and uniqueness of solutions to some recursive equations that arise in economic dynamics.

Martins-da-Rocha, Victor Filipe

Vailakis, Yiannis

English

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Existence and Uniqueness of a Fixed-Point for Local Contractions

http://bibliotecadigital.fgv.br/dspace/bitstream/10438/1620/10/ECMA-MS7920-Supplemental-Material-07-12-10.pdf

Existence and Uniqueness of a Fixed-Point for Local Contractions

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Research Papers in Economics