Editing Recurrence relation (section)

===Economics===
{{see also|time series analysis|simultaneous equations model}}
Recurrence relations, especially linear recurrence relations, are used extensively in both theoretical and empirical economics.<ref>{{cite book |first1=Nancy L. |last1=Stokey |author-link=Nancy Stokey | first2=Robert E. Jr. |last2=Lucas |author-link2=Robert Lucas, Jr. |first3=Edward C. |last3=Prescott |author-link3=Edward C. Prescott |title=Recursive Methods in Economic Dynamics |location=Cambridge |publisher=Harvard University Press |year=1989 |isbn=0-674-75096-9 |url=https://books.google.com/books?id=BgQ3AwAAQBAJ }}</ref><ref>{{cite book |last2=Sargent |first2=Thomas J. |author-link2=Thomas J. Sargent |first1=Lars |last1=Ljungqvist |author-link=Lars Ljungqvist |title=Recursive Macroeconomic Theory |location=Cambridge |publisher=MIT Press |edition=Second |year=2004 |isbn=0-262-12274-X |url=https://archive.org/details/recursivemacroec02edljun |url-access=registration }}</ref>  In particular, in macroeconomics one might develop a model of various broad sectors of the economy (the financial sector, the goods sector, the labor market, etc.) in which some agents' actions depend on lagged variables.  The model would then be solved for current values of key variables ([[interest rate]], real [[GDP]], etc.) in terms of past and current values of other variables.