Munich Personal RePEc Archive

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.

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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.

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