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Difference Equations

Published in Encyclopedia of Financial Models • Nov 28, 2012
NobleIDNI5P88W18R79S82
Authors:
Sergio M. Focardi
,
Frank J. Fabozzi

Abstract

The theory of linear difference equations has found applications in many areas in finance. A difference equation is an equation that involves differences between successive values of a function of a discrete variance. The theory of linear difference equations covers three areas: solving difference e...

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