Application of Dynamic Modelling in Economics

book

English

A typical feature of the current economic development in the world is the growth in the interdependence and interconnectedness of markets of individual national economies and multinational groupings in the form of globalization processes. A larger market gives rise to conditions for a rise in competition among economic entities, which in turn puts pressure on increasing the efficiency of management processes and labour productivity as well as on optimizing activities in a company. Therefore, dealing with a range of such issues in a responsible way requires a large amount of information to be evaluated and existing mathematical procedures to be applied. Wrong decisions taken on the basis of incomplete, or inappropriately or inadequately used information may result in significant economic losses. In economics, this means using models whose development is dependent not only on the current state in which they are, but also on the previous state, which is not possible without massive use of exact methods and an extensive theoretical apparatus. In addition, the rapid development of information and communication technology makes it possible to deploy these methods more and more frequently and successfully and it encourages the development of new means and methods for solving both classical and advanced mathematical methods, which previously did not exist, were poorly available in terms of time or difficult to use due to their extensiveness. A suitable means for mathematical description of economic relationships via dynamic models is differential equations with delayed arguments. One of the advantages of these models lies in the possibility of simulation experiments, which focus on the impact of changes in the parameters included in the model on the behaviour of the monitored variables. In its first part, the book presents modelling in economics, including its historical development. The second part supplements and extend the theory of constructing solutions of systems of differential equations with delay and applies them to selected models of economic processes. The third part of the book provides an extensive overview of selected economic models, described by ordinary differential equations with a delayed argument.

modelling; economics, systems of differential equations with delay

NOVOTNÁ, V.; ŠKAPA, S.

20. 11. 2019

VUTIUM

Brno

978-80-214-5809-3

Application of Dynamic Modelling in Economics

1

149