Discrete Dynamics for the Core-periphery Model

Abstract

It is known that the discretisation of continuous-time models can introduce chaotic behaviour, even when this is not consistent with observations or even the model's assumptions. We propose generic dynamics describing discrete-time core-periphery models that comply with the established assumptions in the literature and are consistent with observed behaviour. The desired properties of the dynamics are proved analytically in the general case. We also give particular forms for the dynamics for those interested in applying our model.