On asymptotic stability of a linear difference equation depending on parameters

The paper focuses on a linear diffrence equation depending on parameters. The equation is related to Good win’s theory of extrapolative expectations. The stability region of the equation is investigated. Conditions for asymptotic stability are formulated and presented as an optimisation problem, which is further analysed. Despite employing state-of-the-art solvers, numerical results have turned out to be too ambiguous to provide the basis for definite conclusions about the investigated stability region.