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Difference equation with nonlinear term 
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#1
Apr2709, 08:09 AM

P: 1

Hi all
I can't figure out how to approach the following difference equation: ax_{t}+f(x_{t1})+bx_{t2}=e_{t} where a, b are constants, e_t is a known function and f(x_t1) is a convex, ushaped function that goes through the origin. (Sorry Tex would not want to work) To begin with, I considered f linear and solved the equation. Exactly one of the roots of the corresponding homogenous equation lies within the unit circle, so I set the free coefficients in the general solution to zero to obtain a bounded solution and derive the particular solution. Does anyone know a way to treat a nonlinear function f? 


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