Vol 59, No 3 (2023)
Articles
The flagship of economic, mathematical and computer modeling: 60 years in line
Abstract
Central Economics and Mathematics Institute of Russian Academy of Sciences — 60
Abstract
Analysis of marginalism. Part 2
Abstract
In recent years, based on the traditional theory of value — the labor theory of value and the theory of surplus value, as well as the hypothesis of Jevons, Tesla and Foley, — Chinese and Russian scholars have further adopted the mathematical paradigm of theoretical mechanics for reference to establish a mathematical model system for economics, which is called the New theory of value. Compatible with the traditional theory of value, the new theory of value puts forward the idea that the value depends on the force of labor expended in the process of commodity production, and the value appreciation depends on the labor gravitational force generated by the improving dexterity of workmen. That is to say, during the process of production, constant capital and variable capital as kinetic energy and potential energy of value, convert into each other under the value conservation theorem, playing a dominate role in generating value and surplus value of products. In addition, the law of diminishing marginal utility is not an axiom, but a special economic law under unbalanced supply and demand. Obviously, these theoretical conclusions are of great significance, which not only make the traditional theory of value a self-consistent logical system, but also complete the New theory of value by absorbing the rational components from both the classical economics based on the labor theory of value and the theory of surplus value, and the neoclassical economics based on the law of diminishing marginal utility. In this paper, we will analyze this problem by investigating the origin of the law of diminishing marginal utility.
The middle class: An analysis of the dependence of size on the level of income inequality
Abstract
Determinants of official benefit-oriented aid to developing countries
Abstract
Managing the prime rate to counter the cyclic income contraction
Abstract
This article proposes an approach to formalize the quantitative relationship between increments of the prime rate and income. Such knowledge provides the possibility of income management according certain prefixed goals. Furthermore, this article considers the possibility of parrying the cyclical decline in income via a corresponding reduction of the prime rate. A management strategy based on the established functional relationship between investments and the prime rate is proposed. It is shown that if the long-term investment trend is inversely proportional to the prime rate, then the trajectory of the concerned cycle depends on the square root of the prime rate. Consequently, its change leads to the divergence of investment component values. This fact provides the basis for developing an approach to parry the cycle contraction. The cycle model in the form of random oscillations of an elastic system under the influence of white noise provides a quantitative estimate of the variation in the prime rate, which in turn, yields the required change in the value of income. Since the considered approach is based on the most probable trajectory of the cycle, the resulting expressions will also lead to the most probable estimates. The applicability of the proposed approach to the analysis of the cycle behavior is demonstrated by the example of current deviations in US income.