Non-Standard Method of Discretization on the Example of Haavelmo Growth Cycle Model

Guzowska Małgorzata
Additional contact information
Guzowska Małgorzata: Department of Econometrics and Statistics, Faculty of Economics and Management, University of Szczecin, Mickiewicza 64, 71-101 Szczecin

Folia Oeconomica Stetinensia, 2008, vol. 7, issue 1, 45-55

Abstract: In the theory of economics most models describing economic growth make use of differential equations. The examples are Solow's and Haavelmo's models. However, when they are used by econometricians many questions arise. Firstly, economic data are presented in discrete form, which implies the use of difference equations. Secondly, the mode transition from continuous form to the discrete one in order to estimate its parameters is still controversial. It has been observed for some time that standard (classical) discretization methods of differential equations often produce difference equations that do not share their dynamics (for example produce chaotic behavior).The essence of above-mentioned problems and proposal of solving them will be presented on the basis of Haavelmo model.

Keywords: Computer simulation; Haavelmo Growth Cycle model; Kahan's discretization method; Computer simulation; Haavelmo Growth Cycle model; Kahan's discretization method (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/v10031-008-0009-8 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:7:y:2008:i:1:p:45-55:n:6

DOI: 10.2478/v10031-008-0009-8

Access Statistics for this article

Folia Oeconomica Stetinensia is currently edited by Waldemar Tarczyński

More articles in Folia Oeconomica Stetinensia from Sciendo
Bibliographic data for series maintained by Peter Golla ().