Economic Analysis: Theory and Practice
 

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Iterative approach to calculating the cross-industry production volumes and developing an alternative concept of the national economy

Vol. 18, Iss. 6, JUNE 2019

Received: 19 February 2019

Received in revised form: 4 March 2019

Accepted: 26 March 2019

Available online: 28 June 2019

Subject Heading: MATHEMATICAL METHODS AND MODELS

JEL Classification: O10, O11, O21, P41, P42

Pages: 1166–1180

https://doi.org/10.24891/ea.18.6.1166

Kuznetsov S.A. Tula State University (TulSU), Tula, Russian Federation
kca.kuznetsov@yandex.ru

ORCID id: not available

Tikhobaev V.M. Institute of Jurisprudence and Management of All-Russian Police Association, Tula, Russian Federation
matrix.balance@mail.ru

ORCID id: not available

Subject The article addresses methods for calculating the volume of production on the basis of iterative approach, taking into account the restrictions on resource (of natural genesis) products, and an algorithm for formulating the concept of public socially-oriented economics under initial price uncertainty.
Objectives The aim of the study is to build a model of the public socially-oriented economics, which guarantees the functioning of all sectors of financial and business operations.
Methods The paper uses elements of linear algebra (operations with matrices and vectors, nontrivial solution of systems of linear algebraic equations), a set of methods and principles of scientific research and complex logical analysis, and modeling of product and financial flows.
Results We present a methodology for calculating the volume of production on the basis of iterative approach, taking into account the restrictions on natural resources. We also present an algorithm of the structure of socially-oriented economy, which guarantees the full functioning of all sectors of financial and economic activity. Pricing principles rest on the use of technological parameters of production and the establishment of State control and management. The built conceptual model shows the possibility to implement an alternative approach to the national economy organization.
Conclusions The proposed methodology is of practical importance not only for the Russian economy. It can be used in other countries with different technological modes.

Keywords: national economy, cross-industry production volume, economic model, cash flow, pricing

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