TEL> Vol.2 No.1, February 2012

Time Representation in Economics

DownloadDownload as PDF (Size:113KB)  HTML    PP. 10-15  

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 © 2014 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.