On Recurrence Relations and Application in Predicting Price Dynamics in the Presence of Economic Recession

Abstract

Recurrence relations is one of the fundamental Mathematical tools of computation as most computational tasks rely on recursive techniques at one time or the other. In this paper, we present some important theorems on recurrence relations and give more simplified approach of determining an explicit formula for a given recurrence relation subject to specified boundary values (initial conditions). We recursively apply Recurrence Relation technique to model Economic wealth decay as a result of recession. We show both numerical computation and graphical representation of our simple model and analysis of market price dynamics due to Economic recession.