Developing Systems

A condition for balanced development of an economy beyond the planning horizon

V. N. Kokarev, V. V. Tokarev

Moscow

Abstract: The behavior of an economic system over a finite planning interval must be consistent with the needs of its further evolution. One way to achieve such consistency is to impose the condition of balanced subsequent evolution, or evolution with complete utilization of capacities and labor resources for a period of any length, on the optimization problems tackled in dynamic multi-sectoral models. This condition is formulated as a lowerbound on the production capacities at the right-hand and of the planning interval. The properties of balanced paths confirm the desirability of this approach.

UDC: 65.012.122


Received: 13.12.1985