Numerical computation for initial value problems in economics

Abstract

We summarise Runge-Kutta type methods for the solution of ordinary differential equations in models of economic dynamics. In this work we are going to present explicit Runge-Kutta type methods, a family of methods to solve numerically systems of ordinary differential equations, without the need to evaluate high-order derivatives. We apply this numerical approach to solve a dynamic, general equilibrium growth model of North-South technological-knowledge diffusion by imitation.North-South; Technological Knowledge Diffusion; Convergence; Numerical Computations