Krouglov, Alexei (2006): Mathematical Dynamics of Economic Growth as Effect of Internal Savings.
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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|
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