On dynamics of an open economy under presence of monopolies and financial obligations

Authors

  • Andrii Makhort The Laboratory of Mathematical Modelling of the Department for Synergetics of the Bogolyubov Institute for Theoretical Physics of the National Academy of Sciences of Ukraine, Kyiv, Ukraine https://orcid.org/0000-0002-8877-5884

DOI:

https://doi.org/10.20535/SRIT.2308-8893.2017.2.08

Keywords:

equilibrium, monopolies, demand, supply, prices

Abstract

An investigation was conducted of an open economy consisting of insatiable consumers. Some consumers can produce own goods to gain a profit while other consumers obtain an external support. The equilibrium is of a Walrassian type. The model takes into account an economy with monopolies and financial obligations of its subjects. The financial obligations lead to the capital redistribution between subjects of the economy. A formation of consumers' preferences depends on the financial obligations. There exists an equilibrium of such an economy. Obtained equilibrium values of model characteristics agree on an acceptable level of the consumption satisfaction of all economy subjects. The values of the capital redistribution are determined at which the levels of the consumption belong to the defined set of values. Based on the evolution of the financial obligations, the description of economy dynamics was proposed.

Author Biography

Andrii Makhort, The Laboratory of Mathematical Modelling of the Department for Synergetics of the Bogolyubov Institute for Theoretical Physics of the National Academy of Sciences of Ukraine, Kyiv

Andrii Phylypovych Makhort,

Ph.D, a senior researcher at the Laboratory of Mathematical Modelling of the Department for Synergetics of the Bogolyubov Institute for Theoretical Physics of the National Academy of Sciences of Ukraine, Kyiv, Ukraine.

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Published

2017-06-26

Issue

Section

Decision making and control in economic, technical, ecological and social systems