Abstract
Most economists recognize that the use of discrete time is only an approximation, but assume (usually implicitly) that the error of approximation involved is trivially small relative to the other sorts of simplification and approximation inherent in economic theorizing. We consider below first the conditions under which this convenient assumption may be seriously misleading. We discuss briefly how to proceed when the assumption fails, and the state of continuous time economic theory.
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© 1990 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Sims, C.A. (1990). Continuous and Discrete Time Models. In: Eatwell, J., Milgate, M., Newman, P. (eds) Time Series and Statistics. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20865-4_5
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DOI: https://doi.org/10.1007/978-1-349-20865-4_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-49551-3
Online ISBN: 978-1-349-20865-4
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