# Questions tagged [difference-equations]

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This question is also regarding Aiyagari and Gertler (1985). We have the governments flow budget contraint: $\frac{B_{t-1}}{p_{t}} + \bar{g}w = \tau_{y}(t)+\tau_{o}(t) + \frac{M_{t}-M_{t-1}}{p_{t}} + ... 3 votes 1 answer 83 views ### Looking for discussion on equilibrium vs dynamic models in econometrics I'm a statistician/machine learning scientist more familiar with molecular bio than economics. Trying to find out if an issue I perceive in bio modeling also occurs in econometric modeling. A common ... 6 votes 2 answers 190 views ### Rigorous proof needed: Acemoglu (Intro Growth) Corollary$2.1.2$I am reading Acemoglu's intro to modern economic growth. But I am having trouble understanding his proof to a theorem related with stability. Here is the theorem: And here are some related ... 3 votes 1 answer 349 views ### Prove the uniqueness of steady state I have a difference equation $$p_t^{1-\alpha}=\alpha\sigma \left(y-p_t-\frac{(\sigma p_{t-1}^\alpha+b)p_t^{1-\alpha}}{\alpha\sigma} \right)$$ where$\alpha \in [0,1]$and everything else is$&...
I'm doing economic modelling where $x_t$ is the intertemporal cash-flow variable. I need to solve the following recurrence relation $$x_{t+1}=\frac{x_{t+8}}{x_{t+1}}$$ My problem is that I don't ...