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Introduction
19
book there were a number of occasions when I set up spreadsheets and investigated
the property of some system and was quite surprised by the plot of the data. Some
times this led me to reinvestigate the theory to establish why I saw what I did. The
whole process, sometimes frustrating, was a most satisfying learning experience.
The scope of using spreadsheets for investigating recursive equations cannot be
emphasised enough. But they can also be used to investigate recursive
systems
.
Often this is no more difFcult than a single equation, it just means copying down
more than one column. ±or example, suppose we have the system
x
t
=
ax
t
−
1
+
by
t
−
1
y
t
=
cx
t
−
1
+
dy
t
−
1
(1.9)
Then on a spreadsheet all that needs to be speciFed is the values for
a
,
b
,
c
and
d
and the initial values for
x
and
y
, i.e.,
x
0
and
y
0
. Then
x
1
and
y
1
can be computed
with
relative
addresses to
x
0
and
y
0
and
absolute
addresses to
a
,
b
,
c
and
d
.Given
these solutions then all that needs to be done is to copy the cells down. Using
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This note was uploaded on 12/14/2011 for the course ECO 3023 taught by Professor Dr.gwartney during the Fall '11 term at FSU.
 Fall '11
 Dr.Gwartney
 Economics

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