Time Representation in Economics
Stefano Bosi
(University of Evry Paris-Saclay)
&
Lionel Ragot
(University of Paris Nanterre)
In this paper, we study general polynomial discretizations in backward and forward looking, and the preservation of
stability properties. We apply these results to the Ramsey model [1]. Its discrete-time version is a hybrid discretizations of
a backward-looking budget constraint and a forward-looking Euler equation. Saddle-path stability is a robust property
under discretization.
Keywords: Discretization; Growth
