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Mathematical Appendix

In: Economic Growth

Author

Listed:
  • Alfonso Novales

    (Complutense University of Madrid)

  • Esther Fernández

    (Complutense University of Madrid)

  • Jesús Ruiz

    (Complutense University of Madrid)

Abstract

This chapter presents the main mathematical tools used throughout the book: (1) solving the system of equations that characterize the solution to discrete time and continuous time deterministic control problems, with special attention to the transversality conditions that guarantee stable solutions, (2) solving first order difference equations with constant or time varying coefficients, (3) matrix algebra, with particular emphasis in the computation of eigenvalues and eigenvectors, since the Jordan decomposition of the transition matrix of a system of equations plays a central role in the numerical solution of the growth models considered in the book, (4) complex analysis, since the eigenvalues and eigenvectors of the transition matrices that come out of growth models are often complex numbers and vectors.

Suggested Citation

  • Alfonso Novales & Esther Fernández & Jesús Ruiz, 2022. "Mathematical Appendix," Springer Texts in Business and Economics, in: Economic Growth, edition 3, chapter 12, pages 621-645, Springer.
    • Handle: RePEc:spr:sptchp:978-3-662-63982-5_12
    DOI: 10.1007/978-3-662-63982-5_12
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