Harrod Model and Modelling of Socio-Economic Processes
Journal Title: Бізнес Інформ - Year 2013, Vol 11, Issue 0
Abstract
Harrod method in the differential form has a discrete character and the resulting growth of economy exponentially is insubstantial. The mistake is based on adjunction of the capital and annual income through a constant ratio. This becomes clear from the positions of study of dimensionality of the used values, which is knowingly avoided in the mathematical economy. Representation of the capital through intensity of income in categories of continuous analysis is quite naturally realised with the help of the Steklov function. It forms a correct Harrod method (CHM), which, unlike the above mentioned exponent, results in inevitability of economic crises, however, the moments of their appearance are calculable. The Steklov function allows generalisation by means of the component designed for monitoring of the economic situation with the aim to specify model parameters. Refraction of CHM to the balance of participants of the economic system in cost interpretation is quite fruitful. The obtained model is a system of differential equations of the first order with variable ratios. Due to this the article formulates general principles of modelling of socio-economic processes.
Authors and Affiliations
Sergey Chernyshov
Keywords
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