Finite-Difference Equations and Systems of Difference Equations in Rational Expectations

Giuseppe Chirichiello
Additional contact information
Giuseppe Chirichiello: Sapienza University of Rome

Chapter Chapter 2 in DSGE Models for Real Business Cycle and New Keynesian Macroeconomics, 2024, pp 5-106 from Springer

Abstract: Abstract In the following, we discuss the solutions of difference equations of the first and second order, and the same difference equations in rational expectations. After considering the extension to systems of difference equations, the chapter extensively reviews the various methods of solution and the Blanchard-Khan procedure for solving systems of rational expectations. In closing, the chapter considers a case study of economic theory with the systematic application of the various solution methods previously considered, to this case. The chapter includes a mathematical appendix that review elementary quadratic equations and some useful notions on complex numbers and trigonometric identities.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sptchp:978-3-031-56034-7_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031560347

DOI: 10.1007/978-3-031-56034-7_2

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().