Chapter 9 Dynamics Chapter 9 Dynamics Nguyen Thi Minh Tam ntmtam vnuagmail com December 22, 2020 1 9 1 Difference equations 2 9 2 Differential equations 9 1 Difference equations Difference equation A difference equation (sometimes called a recurrence relation) is an equation that relates consecutive terms of a sequence of numbers Example 1 Given the difference equation Yt = 3Yt−1 If Y0 = 2, what are Y1,Y2,Y3? Consider the difference equation Yt = bYt−1 + c, (1) where b,c are constants, c 6= 0 T.