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A *difference equation*, or *recurrence equation*,

Examples:

- Fibonacci Numbers:
- $F_n = F_{n - 1} + F_{n-2}$

Eigendecomposition is a good way of solving these equations

Links:

- https://ccrma.stanford.edu/~jos/fp/Difference_Equation_I.html
- http://en.wikipedia.org/wiki/Recurrence_relation