Tenorio Villalón, Ángel F. Martín Caraballo, Ana M. Paralera Morales, C. Contreras Rubio, I.
Year of Publication:
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 16 [Year:] 2013 [Pages:] 165-199
This paper deals with the use of differential equations and finite difference methods for solving several problems in the field of Economics and Business Administration. Economics usually needs to study the evolution of the values which are taken by a given variable in different moments. If the time variable works in a continuous way, its evolution is studied by differential equations. Otherwise, time is a discrete variable and finite difference methods must be used. In addition, to expound the evolution of the notions of differential and difference equations, the goal of this paper is to show a general view (but not comprehensive) of their many applications for explaining economical and financial phenomena.
differential equations finite-difference equations Mathematical Economics and Finance