On the Development and Usage of the Market Economy Parametrical Regulation Theory on the Basis of One-Class Mathematical Models

Abstract

The paper offers further development and applications of the theory of a parametrical regulation of market economy evolution. This theory consists of the following sections: formation of a library of economic systems' mathematical models; of rigidness (structural stability) of mathematical models; development of parametrical regulation laws etc. The work contains new results of the considered one class models' rigidness research with and without parametrical regulation.

The elements of parametrical regulation theory for computable general equilibrium models

“…The GDP calculations results in this experiment are shown in Figure 1 (graph 2). (2) Defining the optimal law (in the sense of the criterion K) from a set (11) for financial investments from the state budget in the innovative economy sector and also the sector of science and education (G s ) on the basis of CGE model with the sector of knowledge (Ashimov et al, 2008a) with constraints imposed on consumer prices growth.…”

“…The results of application of approach of parametrical regulation theory are compared with the results of application of scenario approach (Ashimov et al , 2008a) for regulation of market economy development on the example of the economy of Russian Federation. In Makarov et al (2007) as a development scenario there has been admitted the annual growth of financial investments from state budget in the innovative sector of economy and also in the sector of science and education ( G s ) in two times for eight years (2007‐2015) without taking into consideration the level of consumer prices.…”

“…By using the obtained law the country's GDP grows by 7.38 percent in 2015, the level of consumer prices increases by 24.67 percent in 2015 in comparison with the base variant. The GDP calculations results in this experiment are shown in Figure 1 (graph 2).Defining the optimal law (in the sense of the criterion K ) from a set (11) for financial investments from the state budget in the innovative economy sector and also the sector of science and education ( G s ) on the basis of CGE model with the sector of knowledge (Ashimov et al , 2008a) with constraints imposed on consumer prices growth.In the paper the limitation of type (6) for the levels of consumer prices looks as follows: Equation 14 where p t is the level of consumer prices with parametrical regulation; p t * is the level of consumer prices of the base variant; α =0.09. This inequality means that in using the parametrical regulation the increasing of the level of consumer prices is assumed in comparison with the base variant (without parametrical regulation) no more than by 9 percent for the whole time interval of regulation.…”

“…In Ashimov et al (2008b, 2009) the theory of parametrical regulation (within mathematical models given by systems of non‐linear ordinary differential equations) has been suggested and its effectiveness has been shown on a number of examples (Ashimov et al , 2007, 2008a).…”