Krouglov, Alexei (2006): Mathematical Dynamics of Economic Growth as Effect of Internal Savings.
Download (681kB) | Preview
Paper introduces mathematical models describing long-time effects of real savings on economic growth. Models are built for single-product and multiple-product economy with market forces presented through the system of ordinary differential equations. Modeling results show a limited long-run economic growth for occasional and constant-rate systematic internal savings, a steady long-run economic growth if acceleration rate of internal savings lies within the proper limit for every industry, and a steady long-run economic decline if acceleration rate of internal savings exceeds the suitable limit for certain industry. Modeling outcome also suggests that a long-run economic growth requires direct investment of internal savings into appropriate investment vehicles with exclusion from savings-investment chain the interest-rate-bearing bank accounts with clear danger of suffering a long-run economic decline in case of violation of the requirement.
|Item Type:||MPRA Paper|
|Original Title:||Mathematical Dynamics of Economic Growth as Effect of Internal Savings|
|Keywords:||Business Fluctuations; Economic Growth; Savings; Investment|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
|Depositing User:||Alexei Krouglov|
|Date Deposited:||28. Dec 2006|
|Last Modified:||20. Feb 2013 16:32|
 F. R. Gantmacher, “The Theory of Matrices,” vol. 1 and 2, Chelsea Publishing Co, New York, 1959.  A. Krouglov, “Dynamics of Business Fluctuations in the Leontief-Type Economy,” ewp-mac/9807007, available at http://econwpa.wustl.edu.  A. Krouglov, “Mathematical Dynamics of Economic Markets,” Nova Science Publishers, New York, 2006.  W. Leontief, “The Structure of the American Economy 1919-1939: An Empirical Application of Equilibrium Analysis,” Oxford University Press, New York, 1951.  W. Leontief et al., “Studies in the Structure of the American Economy,” Oxford University Press, New York, 1953.  I. G. Petrovski, “Ordinary Differential Equations,” Prentice Hall, Englewoods Cliffs, NJ, 1966.  N. S. Piskunov, “Differential and Integral Calculus,” Groningen P. Noordhoff, 1965.  L. S. Pontryagin, “Ordinary Differential Equations,” Addison-Wesley, Reading, MA, 1962.