Applications of logistic and generalized logistic difference equations in economics: AK model

Abstract

In this paper, we demonstrate how logistic equation and generalized logistic equation can be applied in teaching economics with the aim that students easily grasp the AK model. To this end, the AK model is firstly modified into three versions, after which the first and the second model are reduced to the generalized logistic equations. The purpose of this paper is to present how through applying the mathematical modifications of mentioned versions of AK models, they become more cognizable to students, which should result by more deeply understanding of well-known economic models.