Difference equations and equailibrium situations

DIFFERENCE EQUATIONS AND EQUAILIBRIUM SITUATIONS(M.Sc. Thesis)Gülser Pınar YILMAZGAZ UNIVERSITYINSTITUTE OF SCIENCE AND TECHNOLOGYJune 2006ABSTRACTIn this study, the information about difference equations, the kinds of differenceequations and equailibrium conditions are given. Simultaneous equations forecast, thequalifications of simultaneous equation models and identification of them and two stepleast squares method which is one of the excess identified equations forecast methods inwhich is an important aspects in econometry is evaluated. In order to an application offirst order difference equations, one of the classical econometry method Two Step LeastSquares is applied on National Income having simultaneous structure. The variablesused in the study are assumed to be stable and these vaiables aren?t evaluated byproperties of time series. The period of 1988:1-1999:4 Turkish Economy is taken onand E-Views program is used in the estimations of equations. By using first orderdifference equations the equailibrium conditions are evaluated.Science Code : 205.1.066Key Words : Difference equations, equailibrium, simultaneous equationsPage Number : 65Adviser : Prof. Dr. Soner GÖNEN