Economic behaviour is inherently dynamic. While things change continuously
over time, much of economic analysis is based on discrete time, such as a month, a quarter, or a year, reflecting the periodic nature of data collecting and decisionmaking.
This book introduces and develops the techniques of discrete time modelling
starting with first-order difference equation models and building up to systems of difference equations, covering the following topics along the way:
• nonlinear difference equation models
• random walks and chaotic processes
• optimization in discrete time models
This easy-to-follow book will primarily be of interest to upper-level students
carrying out economic modelling. The nature of the book – bridging a gap
between dynamic economic models and empirical analysis – will mean that it will also appeal to all academics with an interest in econometrics and mathematical economics.