1. Models of Growth and Decay

  1. James R. Thompson

Published Online: 29 NOV 2011

DOI: 10.1002/9781118109656.ch1

Empirical Model Building: Data, Models, and Reality, Second Edition

Empirical Model Building: Data, Models, and Reality, Second Edition

How to Cite

Thompson, J. R. (2011) Models of Growth and Decay, in Empirical Model Building: Data, Models, and Reality, Second Edition, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118109656.ch1

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 24 OCT 2011

ISBN Information

Print ISBN: 9780470467039

Online ISBN: 9781118109656

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Keywords:

  • annuity plan;
  • growth models;
  • income tax;
  • mortgage;
  • pension;
  • theory of Malthus

Summary

One easy introduction to the subject of growth models is obtained by considering an accounting situation, because such systems are relatively well defined. A pension and annuity plan is generally axiomatized clearly. This chapter considers a possible minimal pension fund, which is referred to as an Individual Retirement Account (IRA). The chapter demonstrates how a relatively simple and well-defined system such as the U.S. income tax is by no means easy to grasp until one goes through some computations with actual figures. It discusses about metastasis and resistance, some mathematical descriptions of the theory of Malthus, and retirement of a mortgage. The chapter on models of growth begins with compound interest because, historically, this seems to be the oldest of the quantified growth models.

Controlled Vocabulary Terms

growth models