Mathematical Model of Reproduction System for Multivariate Dynamic Balance of Production and Consumption

Abstract

In recent years, more and more elements of regulated economy used in different countries have become an object of scientific investigation. In this paper, we establish theoretical knowledge about quantitative relations and regularities of economic development. We show that the mathematical model expands opportunities for economic analysis. It also improves the quality of economic decisions. Intercorporate balance is presented as an economic-mathematical model of the reproduction process. Its expanded form represents the interconnection on production, distribution, consumption and accumulation of social product. Not only sectors of international economy, but physical and cost aspects of reproduction altogether are considered. Intercorporate balances cover only the most important types of products. Making the intercorporate balance requires the concept of a ‘pure’ branch. It unites all the production, regardless of departmental belonging and types of enterprises. The transition from industries to pure branches requires special transformation of actual economic data.