According to the paper "On Stochastic Models of Economic Growth" by Assaf Razin and Joseph A. Yahav, stochastic models might be more suitable because a steady state never actually exists in deterministic models.

I'm curious: Do stochastic growth models explain the world better than deterministic growth models? If so, why?

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  • $\begingroup$ I edited the question because questions that solicit opinions are off topic on this site $\endgroup$
    – 1muflon1
    Jan 11 at 16:20

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