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Existence and Uniqueness of a Fixed Point for Local Contractions
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.
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