Economic Analysis: Theory and Practice

Integration of information and analytical opportunities of equilibrium and dynamic input-output models

Vol. 17, Iss. 4, APRIL 2018

Received: 20 February 2018

Received in revised form: 28 February 2018

Accepted: 6 March 2018

Available online: 27 April 2018


JEL Classification: B41, C02, C61, C68

Pages: 736–753

Duszynski R.R. National Louis University, College of Arts and Sciences, Chicago, Illinois, USA

ORCID id: not available

Toroptsev E.L. North-Caucasus Federal University, Stavropol, Russian Federation

Marakhovskii A.S. Individual Entrepreneur, Stavropol, Russian Federation

Importance The article considers the prospect of creating model complexes based on computable models of economic equilibrium and dynamic models of the input-output balance.
Objectives The aim is to increase the validity and adequacy of economic dynamics modeling and model-based presentation of results of a specific economic policy; analyze main opportunities, advantages and disadvantages of computable general equilibrium models and dynamic input-output balances to develop a new class of hybrid models combining the advantages of the said two models when solving problems of sustainability, quality of transitional processes and economic growth.
Methods We analyze two methodologies of mathematical modeling of macroeconomics from the perspective of their further integration. The first methodology rests on solutions provided by computational models of general economic equilibrium, the second – on the input-output balance when it is presented as a system of algebraic and differential equations.
Results We reveal the boundaries of applicability of computable general equilibrium models and define necessary and sufficient conditions for adequate use of such modeling in the real economy. The paper shows the need for integration of equilibrium and input-output methodologies for modeling, analysis and management of structural transformations of the economy.
Conclusions The problem of mutual integration of information-analytical capabilities of equilibrium modeling and dynamic input-output balance is formulated for the first time ever. Such a hybridization will enable to develop and implement economic policy and improve the structure of the economy based on the analysis of the influence of investment projects on specific dynamic behavior of economic systems.

Keywords: CGE-models, dynamic input-output balance, economic dynamics


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