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Model of Determination of the Dynamical Stability of Economic Systems

Author

Listed:
  • Elena Kostenko

    (Manifest Communications Inc., Ontario, Canada)

  • Vitaly Kostenko

    (Department of Electronics and Control Systems, V.N. Karazin Kharkiv National University, Ukraine)

  • Volodymyr Kuznichenko

    (Department of Mathematical Methods in Economics and Information Technologies, Ukraine)

  • Volodymyr Lapshyn

    (Department of Mathematical Methods in Economics and Information Technologies, Ukraine)

Abstract

The article proposes an algorithm to qualitatively determine the dynamic state of an economic system. The base data for the algorithm are the current values of the parameter that describes the deviation of the system from equilibrium. The method of phase planes is partially used. The interpolation of the statistical data of the system parameter as a function of time, as well as the parametric definition of the forces that act on the system, allows for the determination of its potential functions and points of equilibrium. The characteristics of the points of equilibrium, namely their extrema type, determine the areas of the systems stability and instability. The use of standard computer programs allows for the analytical and graphical (by analysing the form of the potential function) determination of the dynamic stability of a system, by looking at the current parameters of the system. A demonstration of the algorithm is given in an example.

Suggested Citation

  • Elena Kostenko & Vitaly Kostenko & Volodymyr Kuznichenko & Volodymyr Lapshyn, 2015. "Model of Determination of the Dynamical Stability of Economic Systems," Research in Applied Economics, Macrothink Institute, vol. 7(2), pages 1-10, June.
    • Handle: RePEc:mth:raee88:v:7:y:2015:i:2:p:1-10
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    References listed on IDEAS

    as
    1. O. H. Brownlee, 1950. "The Theory of Employment and Stabilization Policy," Journal of Political Economy, University of Chicago Press, vol. 58(5), pages 412-412.
    2. R. David Mclean & Mengxin Zhao, 2014. "The Business Cycle, Investor Sentiment, and Costly External Finance," Journal of Finance, American Finance Association, vol. 69(3), pages 1377-1409, June.
    3. Kostenko Elena & Kuznichenko Vladimir M. & Lapshyn Vladimir I., 2013. "Influence of external periodic and non-linear factors upon stability of economic systems," The Problems of Economy, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), issue 2, pages 212-219.
    4. Mordecai Ezekiel, 1938. "The Cobweb Theorem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 52(2), pages 255-280.
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