Equilibrium in the Production Process of a Two-Sector Model of the New Economy

Van, Germinal (2021): Equilibrium in the Production Process of a Two-Sector Model of the New Economy.

Abstract

The purpose of this paper is to provide a mathematical framework to investigate the method through which an equilibrium is met between two economic sectors. The equilibrium process being discussed in this paper focuses essentially on the production process of the goods and services in each sector within an economy that has been affected by COVID-19. This mathematical model helps explaining how two economic sectors reach an equilibrium when their production methods are significantly different and when they do not produce at the same pace. This paper is purely theoretical and does not concern itself with empirical verification.

• Item Type: MPRA Paper
• Language: English
• Keywords: Mathematical Economics, Economic Theory, Production Theory, Input-Output Analysis, General Equilibrium Theory, Differential Calculus
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C20 - General; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models

References

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