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Unformatted text preview: to do with t 1 for example. This partly arises from the caveat mentioned above. Many of these can be avoided by writing the equations in terms of future lags, as in the case of the HarrodDomar model. (4) A number of solutions involve complex output that is not always meaningful. This is especially true of general algebraic problems, such as solving y t + 2 = ay t + 1 + by t . (5) Even when results have been simpliFed, it is not always possible to interpret the results in an economically meaningful way. or instance, in problem (v), it is impossible for a computer software package to know that ( a c ) / ( b + d ) is the equilibrium price and that it is more economically meaningful to take the difference ( p ( a c ) / ( b + d )). Economic insight is still a vital element....
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 Fall '11
 Dr.Gwartney
 Economics

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