Economics Dynamics Problems 120

Economics Dynamics Problems 120 - 104 Economic Dynamics We...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
104 Economic Dynamics We can consider two special cases: Case A : a k = a for all k Case B : a k = a and g k = b for all k Case A a k = a for all k In this case we have y n + 1 = ay n + g n g 0 , y 0 at n = 0 Using the general result above, then n 1 ± k = 0 a k = a n and n 1 ± k = i + 1 a k = a n i 1 Hence, y n = a n y 0 + n 1 ² i = 0 a n i 1 g i (3.17) Case B a k = a and g k = b for all k In this case we have y n + 1 = ay n + by 0 at n = 0 We already know that if a k = a for all k then n 1 ± k = 0 a k = a n and n 1 ± k = i + 1 a k = a n i 1 and so y n = a n y 0 + b n 1 ² i = 0 a n i 1
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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.

Ask a homework question - tutors are online