Discrete time representation of stationary and non-stationary continuous time systems
Article Abstract:
The development of the formulae for an exact discrete time representation corresponding to a continuous time system whose order k is greater than two was described. The formulae allows for mixed stock and flow data as well as the possibility of zero roots in the continuous time system. An explicit moving average model of the disturbances in the discrete time representation was also derived. It was shown that the exact discrete time model enables estimation and inference to be performed in both stationary and non-stationary higher-order continuous time systems.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1999
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Dynamic optimization and forward looking processes
Article Abstract:
A study presents an economic model of solving optimization problems with rational expectations under perfect foresight assumptions. The model can be modified into a fourth-order ordinary differential system with variable coefficients and initial and asymptotic conditions. The parameters determined the stability of optimal controls. The introduction of rational expectation in the solution of the optimization problem may generate asymptotic instability.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1997
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