Unformatted text preview: equation. 3. Given your solutions to the questions above, can you now solve the diﬀerence equation y t = 0 . 25 y t-1 + 2? 4. Consider next the diﬀerence equation y t = 0 . 5 iy t-1 . Solve this diﬀerence equation and show that y t converges to zero as t → ∞ . 5. Finally, consider the diﬀerence equation y t = iy t-1 . Show that y t does not converge as t → ∞ . 1...
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This note was uploaded on 07/17/2008 for the course ECON 840 taught by Professor De jong during the Spring '08 term at Ohio State.
- Spring '08
- DE JONG