Time Representation in Economics

Download Download as PDF (Size:113KB)  HTML   XML  PP. 10-15  
DOI: 10.4236/tel.2012.21002    4,088 Downloads   11,174 Views   Citations

ABSTRACT

In this paper, we study general polynomial discretizations in backward and forward looking, and the preservation of stability properties. We apply these results to the Ramsey model [4]. Its discrete-time version is a hybrid discretizations of a backward-looking budget constraint and a forward-looking Euler equation. Saddle-path stability is a robust property under discretization.

Cite this paper

S. Bosi and L. Ragot, "Time Representation in Economics," Theoretical Economics Letters, Vol. 2 No. 1, 2012, pp. 10-15. doi: 10.4236/tel.2012.21002.

References

[1] H. Krivine, A. Lesne and J. Treiner, “Discrete-Time and Con-tinuous-Time Modelling: Some Bridges and Gaps,” Mathe-matical Structures in Computer Science, Vol. 17, No. 2, 2007, pp. 261-276. doi:10.1017/S0960129507005981
[2] P. A. Samuelson, “The Stability of Equilibrium: Comparative Statics and Dynamics,” Econometrica, Vol. 9, No. 2, 1941, pp. 97-120. doi:10.2307/1906872
[3] S. Bosi and L. Ragot, “Time, Bifurcations and Economic Applications,” CES Working Papers, 2009.28, University of Paris 1, 2009.
[4] F. Ramsey, “A Mathematical Theory of Saving,” Economic Journal, Vol. 38, No. 152, 1928, pp. 543-559. doi:10.2307/2224098

  
comments powered by Disqus

Copyright © 2016 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.