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oai:docta.ucm.es:20.500.14352/229522025-05-19T18:21:54Zcom_20.500.14352_14col_20.500.14352_17

Continuous vs Discrete Time Modelling in Growth and Business Cycle Theory Licandro, Omar Puch González, Luis Antonio Ruiz Andújar, Jesús O40 Q50 E10 E22 Discrete Time Continuous Time Solow model Ramsey model Indeterminacy Time–to–Build Delay Differential Equations. Desarrollo económico Macroeconomía 5307.03 Modelos y Teorías del desarrollo Económico 5307.04 Estudios del desarrollo Económico 5307.14 Teoría Macroeconómica Economists model time as continuous or discrete. For long, either alternative has brought about relevant economic issues, from the implementation of the basic Solow and Ramsey models of growth and the business cycle, towards the issue of equilibrium indeterminacy and endogenous cycles. In this paper, we introduce to some of those relevant issues in economic dynamics. First, we describe a baseline continuous vs discrete time modelling setting relevant for questions in growth and business cycle theory. Then we turn to the issue of local indeterminacy in a canonical model of economic growth with a pollution externality whose size is related to the model period. Finally, we propose a growth model with delays to show that a discrete time representation implicitly imposes a particular form of time–to–build to the continuous time representation. Our approach suggests that the recent literature on continuous time models with delays should help to bridge the gap between continuous and discrete time representations in economic dynamics. Fac. de Ciencias Económicas y Empresariales Instituto Complutense de Análisis Económico (ICAE) TRUE pub 2023-06-18T05:39:18Z 2023-06-18T05:39:18Z 2018 technical report https://hdl.handle.net/20.500.14352/22952 2341-2356 eng Documentos de trabajo del Instituto Complutense de Análisis Económico (ICAE) Atribución-NoComercial-CompartirIgual 3.0 España https://creativecommons.org/licenses/by-nc-sa/3.0/es/ open access application/pdf Facultad de CC Económicas y Empresariales. Instituto Complutense de Análisis Económico (ICAE)