NUMERICAL SOLUTION OF A CONTINUOUS MODEL OF ECONOMY USING MTSA-DERIVED BLOCK METHOD

Continuous models of economy adopted to either define evolutions of economic systems or investigate economic dynamics, amongst its other areas of applications, are known to be related to differential equations. The considered model in this article takes the form of a second order non-linear ordinary differential equation (ODE) which is conventional solved by reducing to the system of first order. This approach is computationally tasking, unlike block methods which bypasses reduction by directly solving the model. A new approach is introduced named Modified Taylor Series Approach (MTSA). Hence, the resultant MTSA-derived block method is implemented to solve the second order non-linear model of economy under consideration.