Witold Rzymowski , Agnieszka Surowiec

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In this paper, we present a new method of the econometric model construction: the difference equation method. We illustrate the proposed approach using an application example from human population dynamic study. We find out that proposed method is very useful to find one of the three forms of proposed models of human population satisfying the small maximal relative errors. The maximal relative error is a measure to verify the model of human population. The proposed method is tested for all available data referring to the human population in the OECD countries as well as in selected non-OECD countries.


difference equations, nonlinear models, parameter estimation, relative error, demography


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