TY  - JOUR
AU  - Tarasova, Valentina V. 
AU  - Tarasov, Vasily E. 
PY  - 2017
TI  - Accelerators in Macroeconomics: Comparison of Discrete and Continuous Approaches
JF  - American Journal of Economics and Business Administration
VL  - 9
IS  - 3
DO  - 10.3844/ajebasp.2017.47.55
UR  - https://thescipub.com/abstract/ajebasp.2017.47.55
AB  - 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.