I used blender, modelled the 3D spheres, rendered it and photoshop for the text.
Discrete-time was inherited from the previous framework (OAT). It can be simpler, but continuous is sometimes more tractable and better suited for models emphasising other features. For example, when modelling economic growth directly, or when thinking about utility, or when we want to express a hazard rate that is micro-founded on some risk mechanism, those models would generally be better expressed in continuous time. This recent paper is a good example of the typical setups economics papers use in continuous time.
Thank you very much Roman!
I used blender, modelled the 3D spheres, rendered it and photoshop for the text.
Discrete-time was inherited from the previous framework (OAT). It can be simpler, but continuous is sometimes more tractable and better suited for models emphasising other features. For example, when modelling economic growth directly, or when thinking about utility, or when we want to express a hazard rate that is micro-founded on some risk mechanism, those models would generally be better expressed in continuous time. This recent paper is a good example of the typical setups economics papers use in continuous time.