Stable Solutions to Homogeneous Difference: Differential Equations with Constant Coefficients

Manfred Krtscha and Ulf von Kalckreuth

No 608, Discussion Papers from Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre

Abstract: In economic reality, reactions to external shocks often come with a delay. On the other hand, agents try to anticipate future developments. Both can lead to difference-differential equations with an advancing argument. These are more difficult to handle than either difference or differential equations, but they have the merit of added realism and increased credibility. We present a general method for determining the stability of any solution to a homogeneous linear difference-differential equation with constant coefficients and advancing arguments. We will also demonstrate the applicability of our concepts to economic modelling.

JEL-codes: C61 E50 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
https://madoc.bib.uni-mannheim.de/1003/1/608.pdf

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:mnh:vpaper:1003

Access Statistics for this paper

More papers in Discussion Papers from Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre Contact information at EDIRC.
Bibliographic data for series maintained by Katharina Rautenberg ().