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Equilibrium in the Production Process of a Two-Sector Model of the New Economy

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  • Van, Germinal

Abstract

The purpose of this paper is to provide a mathematical framework to investigate the method through which an equilibrium is met between two economic sectors. The equilibrium process being discussed in this paper focuses essentially on the production process of the goods and services in each sector within an economy that has been affected by COVID-19. This mathematical model helps explaining how two economic sectors reach an equilibrium when their production methods are significantly different and when they do not produce at the same pace. This paper is purely theoretical and does not concern itself with empirical verification.

Suggested Citation

  • Van, Germinal, 2021. "Equilibrium in the Production Process of a Two-Sector Model of the New Economy," MPRA Paper 106569, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106569
    as

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    File URL: https://mpra.ub.uni-muenchen.de/106569/1/MPRA_paper_106569.pdf
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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
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    More about this item

    Keywords

    Mathematical Economics; Economic Theory; Production Theory; Input-Output Analysis; General Equilibrium Theory; Differential Calculus;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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