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Time Representation in Economics
University of Evry, Evry, France
University of Evry, Evry, France
- 1 University of Evry, Evry, France
- 2 University of Evry, Evry, France
Theoretical Economics Letters·Volume 02 (2012)·Pages 10–15·Published 23 February 2012·DOI10.4236/tel.2012.21002
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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.
KeywordsDiscretizationGrowth
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