Discrete time

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.

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