Author Description

Economic behaviour is inherently dynamic. While things change continuously over time, much of economic analysis is based on discrete time, such as a month, quarter or a year reflecting the periodic nature of data-collecting and decision-making. This text introduces and develops the techniques of discrete time modelling starting with first order difference equation models and building up to systems of different equations, covering such topics as non-linear difference equation models, random walks and chaotic processes, and optimization in discrete time models.