In this study, Palomba economic model was analyzed through difference equations. For these products given as capital and consumer goods in the model, their non-marketable loss rates were also taken into account. Tirivial and non-tirivial equilibrium points were found and local asymptotic stability (LAS) conditions of these equilibrium points were investigated. Although the non-trivial equilibrium point is always unstable, the conditions for the stability of the trivial equilibrium point were found. In this way, in addition to the thought put forward by Palomba, the absence of periodicity was expressed too. The findings were supported by numerical studies.