Steady state properties of multi‐state economic models

A simple method to derive optimal steady states of multi‐state dynamic economic systems with minimal assumptions on the underlying processes is developed. This is accomplished by an n ‐dimensional function defined over the n ‐dimensional state space in terms of the model's primitives. The location and stability properties of optimal steady state candidates are characterized by the roots and derivatives of this function. A resource management example illustrates the simplicity and applicability of the method.