Economics Dynamics Problems 249

Economics Dynamics Problems 249 - Discrete systems of...

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Discrete systems of equations 233 Figure 5.9. Example 5.14 | R | > 1 Consider the system x t = x t 1 + 2 y t 1 y t =− x t 1 + y t 1 Then the matrix of the system is A = ± 12 11 ² with characteristic roots r = 1 + i 2 and s = 1 i 2. Hence R = ³ (1) 2 + ( 2) 2 = 3 = 1 . 73205 Such a system should therefore have an unstable focus. We illustrate this in Fgure 5.10, where the original system is set up on a spreadsheet and the ini- tial point is given by (
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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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