2015/26 LEM Working Paper Series

Drift criteria for persistence of discrete stochastic processes on the line

Giulio Bottazzi and Pietro Dindo
  Keywords
 
Discrete-time stochastic processes; asymptotic behavior; persistence and transience
  JEL Classifications
 
C02


  Abstract
 
We provide sufficient conditions for the persistence or transience of stochastic processes on the line based on the sign of the conditional drift. Our findings extend previous results in the literature to the large class of discrete time processes with bounded increments.
 
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