Time Representation in Economics ()
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.
Share and Cite:
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.
Conflicts of Interest
The authors declare no conflicts of interest.
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S. Bosi and L. Ragot, “Time, Bifurcations and Economic Applications,” CES Working Papers, 2009.28, University of Paris 1, 2009.
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