@article {10.3844/ajebasp.2017.47.55,
article_type = {journal},
title = {Accelerators in Macroeconomics: Comparison of Discrete and Continuous Approaches},
author = {Tarasova, Valentina V. and Tarasov, Vasily E.},
volume = {9},
year = {2017},
month = {Nov},
pages = {47-55},
doi = {10.3844/ajebasp.2017.47.55},
url = {https://thescipub.com/abstract/ajebasp.2017.47.55},
abstract = {We prove that the standard discrete-time accelerator equation cannot be considered as an exact discrete analog of the continuous-time accelerator equation. This leads to fact that the standard discrete-time macroeconomic models cannot be considered as exact discretization of the corresponding continuous-time models. As a result, the equations of the continuous and standard discrete models have different solutions and can predict the different behavior of the economy. In this study, we propose a self-consistent discrete-time description of the economic accelerators that is based on the exact finite differences. For discrete-time approach, the model equations with exact differences have the same solutions as the corresponding continuous-time models and these discrete and continuous models describe the same behavior of the economy. Using the Harrod-Domar growth model as an example, we show that equations of the continuous-time model and the suggested exact discrete model have the same solutions and these models predict the same behavior of the economy.},
journal = {American Journal of Economics and Business Administration},
publisher = {Science Publications}
}