Discrete Time or Continuous Time, That is the Question: the Case of Samuelson’s Multiplier-Accelerator Model

Luo, Yinghao (1998): Discrete Time or Continuous Time, That is the Question: the Case of Samuelson’s Multiplier-Accelerator Model.

Abstract

A basic problem in economic dynamics is the choice of continuous-time or discrete-time in mathematical modeling. In this paper, we study the continuous-time Samuelson’s multiplier-accelerator model and compare this continuous-time model with its classical discrete-time model. We find that time scales have an influence on the perfect symmetry of periodic motion.

• Item Type: MPRA Paper
• Language: English
• Keywords: Samuelson’s multiplier-accelerator model, time scales, perfect symmetry
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; H - Public Economics > H5 - National Government Expenditures and Related Policies

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