Differential equations and their application In the economy
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Abstract
Economics is a science that uses mathematics as a tool for interpreting assumptions in models and their predictions. This science offers quantitative techniques that allow to enter the respective analyzes, considering the hypotheses and to obtain the results for interpretation. Among the mathematical tools used for the application of Economics, there are differential equations. In this type of equations, the unknown is in a real variable function and the function, independent variable and derived from the unknown function are involved. This type of equations is closely related to the temporary valuation of financial products, based on a somewhat discount rate and allows analyzing the link between the variable and its possible solutions, for the description of functional variables. The objective of this study is to analyze the importance of the use of differential equations in the field of Economics, where the postulates of this topic will be stated, then we will review the literature in the field of Economics, to conclude with the conclusions of the present study.
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