Unformatted text preview: to do with t ≥ − 1 for example. This partly arises from the caveat men-tioned above. Many of these can be avoided by writing the equations in terms of future lags, as in the case of the Harrod–Domar model. (4) A number of solutions involve complex output that is not always meaning-ful. 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 in-terpret 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 economi-cally meaningful to take the difference ( p − ( a − c ) / ( b + d )). Economic insight is still a vital element....
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- Fall '11
- Economics, How to Solve It, DISCRETE DYNAMIC SYSTEMS, economically meaningful way, simplify command, rsolve command