Time Representation in Economics

doi:10.4236/tel.2012.21002

Home > Journals > Business & Economics > TEL

TEL> Vol.2 No.1, February 2012

Open Access

Time Representation in Economics

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

DOI: 10.4236/tel.2012.21002 4,717 Downloads 11,870 Views Citations

Author(s) Leave a comment

Stefano Bosi, Lionel Ragot

Affiliation(s)

University of Evry, Evry, France.

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.

KEYWORDS

Discretization; Growth

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