Standard Theory of Linear Difference Equations, Power Function

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I'm reading this paper and have a question about the math done on page 4.

We go from having

$$\lambda^{T_0} = p \lambda^{T_{0 + 1}} + q\lambda^{T_{0 - 1}}$$ to

$$p \lambda^2 - \lambda + q = 0$$

How does this reduction work? It's unclear to me how we lose the distinguishers between $\lambda^{T_0}, \lambda^{T_{0 + 1}}$, etc. I tried rearranging so that I had

$$0 = p \lambda^{T_{0 + 1}} - \lambda^{T_0} + q\lambda^{T_{0 - 1}}$$

but wasn't sure what I should do after this. Any help is appreciated.

Also, where can I read about how the power function becomes $q_{T_0} = \lambda^{T_0}$? I know what a power function is and understand finding a constant ratio, but I've never seen one put in terms of a $\lambda$. Thanks in advance!

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What it says is

$\lambda^{T_0} = p \lambda^{T_{0 }+ 1}+ q\lambda^{T_{0 }- 1} $.

Now you can divide by $\lambda^{T_{0 }- 1} $ to get that quadratic.

To make it clearer, I'll replace $T_0$ by $n$.

What it says is

$\lambda^{n} = p \lambda^{n+ 1}+ q\lambda^{n- 1} $.

Now you can divide by $\lambda^{n- 1} $ to get that quadratic.