Economic growth induced by the increases of investment and demand

Krouglov, Alexei (2021): Economic growth induced by the increases of investment and demand.

Abstract

Presented here is a simplified mathematical model exploring dynamic factors of the economic growth. In particular, it examines two factors affecting the economic growth – first factor is an increase of the rates of product investment and another factor is an increase of the rates of product demand. Economic growth is presented through an increase of the rates of monetary demand. If the rates of monetary demand evolve there is an economic growth. If the rates of monetary demand decrease there is an economic decline. Both an increase of the product investment and increase of the product demand have similar effects with regard to equilibrium between the product supply and product demand. For investment and demand increases the model explores scenarios of constant-rate and constant-accelerated product amendments.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic growth; investment increase; demand increase
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O42 - Monetary Growth Models

References

Krouglov, Alexei (2006). Mathematical Dynamics of Economic Markets. New York: Nova Science Publishers.

Krouglov, Alexei (2017). Mathematical Models of Economic Growth and Crises. New York: Nova Science Publishers.

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Piskunov, Nikolai S. (1965). Differential and Integral Calculus. Groningen: P. Noordhoff.