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Financial Analytics: Science and Experience
 

The problem of digitalization of the dynamic input-output model

Vol. 16, Iss. 2, JUNE 2023

Received: 21 January 2020

Received in revised form: 13 February 2020

Accepted: 27 February 2020

Available online: 30 May 2023

Subject Heading: MATHEMATICAL ANALYSIS AND MODELING IN ECONOMICS

JEL Classification: B41, C02, C61, C68

Pages: 205–229

https://doi.org/10.24891/ea.19.5.946

Evgenii L. TOROPTSEV North-Caucasus Federal University (NCFU), Stavropol, Russian Federation
eltoroptsev@yandex.ru

https://orcid.org/0000-0002-4036-6002

Aleksandr S. MARAKHOVSKII Plekhanov Russian University of Economics (PRUE), Pyatigorsk Branch, Pyatigorsk, Russian Federation
marahov@yandex.ru

https://orcid.org/0000-0003-2248-8425

Ramziya R. DUSZYNSKI National Louis University, College of Arts and Sciences, Chicago, Illinois, USA
ramzia@aol.com

ORCID id: not available

Subject. The article addresses the digitalization of the dynamic model of inter industry balance.
Objectives. We focus on developing our own statistical research base for input-output analysis, structural forecasting, sustainability, economic dynamics and economic growth. Mathematically, the study is formalized by the Cauchy problem for ordinary differential equations.
Methods. The methodology components include theoretical and practical bases of the systems, statistical, input-output, and structural dynamic analysis.
Results. Based on official statistics, we solved the problem of digitalization of the dynamic model of input-output balance, written in the form of a system of differential equations. For the first time, this model was transferred from a set of purely theoretical structures to a class of computable models. We developed a sequence of coordinated actions and calculations, which serve as a methodology for the said transfer. We also devised and presented the elements of our own statistical research base.
Conclusions. The quantitative measurement of the dynamic inter-industry model in the form of a system of differential equations opens up broad perspectives on the sustainability of macroeconomics, its structural readiness for expanded reproduction, i.e. economic growth. The model can be used both independently and in combination with equilibrium and other agent-oriented models.

Keywords: dynamic model, input-output balance, sustainability, economic growth, inertia

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