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[SOLVED] Max and min of discrete model

dwsmith

Well-known member
Feb 1, 2012
1,673
To find the max and min of a discrete model, I solve

$$
\frac{df}{dN_t} =0\Rightarrow N_m
$$
Then $N_{\text{max}} = f(N_m)$, correct?

Because whenever I try to solve

$$
N_{t+1} =\frac{(1+r)N_t}{1+rN_t}
$$

It doesn't work.

The derivative is
$$
\frac{1+r}{(1+rN_t)^2}=0
$$