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Deficit Model of Administering Investment Projects in Regions

Author

Listed:
  • Lapshyn Vladimir I.

    (Kharkiv Institute of Finance of the Ukrainian State University of Finance and International Trade)

  • Kuznichenko Vladimir M.

    (Kharkiv Institute of Finance of the Ukrainian State University of Finance and International Trade)

Abstract

The article considers a probabilistic approach to the deficit model of distribution of financial resources between executors of investment projects in the closed system on the basis of Markov chains, which takes into account processes of sales (receipt of money) and purchases (expenditures). This process takes into account influence of local administration, which could result in levelling financial states of project executors. The stochastic matrix of Markov chains provides with a possibility to study every step of the studied process. The use of the z-transformation method allows avoiding difficulties, which arise due to multiplicity of own values of stochastic matrices and gives a possibility to obtain an analytical form of turnover of financial resources in the period under consideration. The obtained expression simplifies analysis and calculation of states of the system compared to other models. The article identifies conditions of interaction of project executors with external systems and volumes of financial resources, which could be planned for exchange at each step of the process.

Suggested Citation

  • Lapshyn Vladimir I. & Kuznichenko Vladimir M., 2013. "Deficit Model of Administering Investment Projects in Regions," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 6, pages 57-62.
  • Handle: RePEc:idp:bizinf:y:2013:i:6:p:57_62
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