A Mathematical Model of a Reproduction System for Multifactor Dynamic Balances of Production and Consumption

Abstract

This article develops the theoretical knowledge about the quantitative relations and regularities of economic development, as well as the management mechanisms of the national economy. Outlines of the methodology and methods of construction, analysis and application of a mathematical model of reproduction for multifactor dynamic balance of production and consumption show that the mathematical model essentially expands the opportunities of economic analysis and enhances the quality of economic policies. An interindustry balance (IIB) is presented as a mathematical model of the process of reproduction that in an expanded form reflects the relationships of production, distribution, consumption and accumulation of the social product by the sectors of the national economy and in the unity of the physical and cost aspects of reproduction. Interindustry balances in natural value cover only the most important types of products. When constructing an interindustry balance, we use the concept of “clean” industry; i.e., a conditional industrial branch that contains all information about production of the product under consideration regardless of the departmental subordination and ownership forms of the enterprises and firms. Transition from the real industries to “clean” requires a special transform of the real data objects such as the aggregation of industries (enterprises) or the exclusion of intra.