TITLE:
Time Representation in Economics
AUTHORS:
Stefano Bosi, Lionel Ragot
KEYWORDS:
Discretization; Growth
JOURNAL NAME:
Theoretical Economics Letters,
Vol.2 No.1,
February
23,
2012
ABSTRACT: In this paper, we study general polynomial discretizations in backward and forward looking, and the preservation of stability properties. We apply these results to the Ramsey model [4]. Its discrete-time version is a hybrid discretizations of a backward-looking budget constraint and a forward-looking Euler equation. Saddle-path stability is a robust property under discretization.