Discrete time

By:
Updated: Aug 20, 2021

The representation of time in a dynamic economic model as a discrete variable with time periods t=0,1,2,3,…. Processes in discrete time are described by difference equations that determine the evolution of the system from period t to period f+1. This can be contrasted with the treatment of time as a continuous variable, where processes are described by differential equations. See also continuous time.

Reference: Oxford Press Dictonary of Economics, 5th edt.



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.