Description of world GDP rate changes by using discrete dynamic model
Journal Title: Business and Economic Horizons - Year 2017, Vol 13, Issue 1
Abstract
The rate of world GDP is changing periodically. A discrete dynamic model (DDM) describes this process. The model is based on the assumption that the global economy has certain “inertia”. This allows us to describe the rate of change of global GDP in the subsequent year as a function of its change in the preceding year. This function can be approximated by using a finite number of terms of its Taylor series. A methodologically more rigorous approach is proposed for approximating the rate of world GDP change on non-overlapping time intervals. Radii of convergence were determined for approximating polynomials for these time ranges. Studies have shown the dependence of the shape of the radius of convergence from the nature of the convergence. DDM has a practical significance because it allows identifying the change in a character of economic dynamics without prior assumptions about the factors driving this trend.
Authors and Affiliations
Anatoly Kilyachkov, Larisa Chaldaeva, Nikolay Kilyachkov
Keywords
Related Articles
- EP ID EP448181
- DOI 10.15208/beh.2017.06
- Views 78
- Downloads 0
SMME attitudes towards financial bootstrapping: A perspective from a developing economy
The national and international literature and research on SMMEs has been developed very strongly in the last decade. There have been many successful attempts on the part of many researchers and scholars to unpack new and...
Can disclosure practices and stakeholder management influence zakat payers’ trust? A Malaysian evidence
This study examines whether disclosure practices and stakeholder management play an important role in influencing the zakat payers' trust in the zakat institutions in Malaysia. A regression analysis was performed to exam...
Threshold convergence between the federal fund rate and South African equity returns around the colocation period
Using weekly data collected from 20.09.2008 to 09.12.2016, this paper uses dynamic threshold adjustment models to demonstrate how the introduction of high-frequency and algorithmic trading on the Johannesburg Stock Excha...
Demographic structure and housing prices: East Asia and Europe
The recent booms in the global housing markets have been suspected to be bubbles owing to the weak economic circumstances after the 2008 financial crisis. While the behavioral economics stresses the role of irrational hu...
Foreign direct investment and growth causal nexus in economic community of West African States: Evidence from spectral causality
The paper examines the causal relationship between FDI and economic growth (GDP) in thirteen ECOWAS countries using both time domain and frequency domain testing procedures using annual data from 1970 to 2015. The result...