Economics Dynamics Problems 246

Economics Dynamics - 230 Economic Dynamics Figure 5.7 i.e z1t = 2t z10 t2t1 z20 z2t = 2t z20 Clearly z1t and z2t as t regardless of the initial

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230 Economic Dynamics Figure 5.7. i.e. z 1 t = 2 t z 10 + t 2 t 1 z 20 z 2 t = 2 t z 20 Clearly, z 1 t →∞ and z 2 t as t regardless of the initial point. This is illustrated for the original system using a spreadsheet, as shown in Fgure 5.7 for the initial point (0 . 1 , 0 . 1). Example 5.12 Consider x t + 1 = 8 + 1 . 5 x t y t y t + 1 =− 15 + x t 0 . 5 y t Then x = 108 and y = 62. Taking deviations from equilibrium x t + 1 x = 1 . 5( x t x ) ( y t y ) y t + 1 y = ( x t x ) 0 . 5( y t
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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.

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