From: Anders Ekeland (anders.ekeland@ONLINE.NO)
Date: Tue Mar 15 2005 - 15:05:09 EST
Hi Jerry, Very difficult to discuss a paper/model I have not seen, and a static population is not an important restriction in an industrialized economy in the short (2-3) and medium (5-10) run. Physical capital stocks could be given in the short run, if the rate of utilization and/or productivity is allowed to change. I agree that the mathematical tools are not decisive, but IMHO difference-eq opens up for quite different extentions/modification of models, than a simultaneus eq. model, which is locked into compartative statics from the outset. But I will refrain from further comments on a paper I have not read - where can I get hold of that paper? Regards Anders At 20:31 15.03.2005, Gerald_A_Levy@MSN.COM wrote: > > But since your model is in difference-eq form (dynamic), [...] > >Anders: > >If it is a short-run model in which "productivity, population, and physical >capital stocks in place are all constant" how can it be said to have a >"dynamic" form? Difference equations by themselves do not a dynamic >model make. > >In solidarity, Jerry
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