4.2. Force of interest, Walrasian stability, utility functions, and capital formation with ordinary differential equation

Within this section, we will provide some examples of important economic applications of the differential equations of the first order.
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Figure 4.1-6 Runge-Kutta fourth-order versus Euler's method and exact solution with step size   =   0.025.
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Figure 4.1-7 Runge-Kutta fourth-order versus Euler's method with step size   =   0.005.

Example 1 (Force of interest)

Probably this is one of the most studied ...

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