Second-order Difference Equations and their Utilization in Economic Modelling
|Author:||Bc. Andrej Dudík|
|Year:||2004 - summer|
|Leaders:|| doc. RNDr. Oldřich John CSc.
|Work type:|| Bachelors
|Awards and prizes:||B.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance|
|Abstract:||Difference equations represent a possible method of modeling of dynamic systems, with property of the isolated time periods. This work focuses on utilization of second-order difference equations in economic models.
Basic mathematical apparatus used for quantitative as well as qualitative analysis of second-order linear difference equations is explained in the first chapter.
Then, in the second and the third chapters, the methods listed above are applied on analysis of two macroeconomic models – the multiplier-accelerator model and the dynamic aggregate demand and dynamic aggregate supply model. Besides estimation of solution of the observed variables, the attention is paid to the problems of stability and monotonicity of adjustment process. The reaction of system on economic policy is also discussed in the work.
|Downloadable:|| Andrej Dudík