Neumann's Model of an Expanding Economy

The classical (original) Neumann model is constructed under the following premises: An economy characterized by linear technology consists of industries, each of which has a finite number of production processes, i.e. several types of goods are produced, and joint activities of industries are allowed; production processes unfold in time, and the implementation of costs and […]

Consolidated income distribution account

For a generalized understanding of the reflection of the processes of distribution and redistribution of income and their results, expressed in the formation of disposable income of the economy, these processes can be reflected in the summary account. The consolidated income distribution account reflects the distribution and redistribution of a country’s income at the level […]

Total personal income

To calculate the total amount of personal income, it is necessary to deduct from the NNP the savings of corporations to add to the remaining amount all types of transfer payments. If all taxes were deducted from the amount obtained in this way, then the total personal income would be identical to personal income after […]

Demand functions. Coefficient of elasticity

As a result of solving the problems of optimal choice, it is possible to trace the relationship between changes in the price and income systems of a group of consumers, on the one hand, and the demand of this group for goods and services, on the other; and thus construct an optimal demand function. In […]

Determination of the seasonal component of the time series

Depending on the nature of seasonal fluctuations, two types of models are distinguished – additive and multiplicative. According to the additive model, the time series with seasonal fluctuations is represented as: where:         is the value of the predicted variable for the -th point in time;         – trend […]