Mathematical Modelling of Qualitative System Development

Jan Lánský, Jiří Mihola and Petr Wawrosz
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Jan Lánský: Faculty of Economic Studies, University of Finance and Administration, Estonská 500/3, 101 00 Prague, Czech Republic
Jiří Mihola: Faculty of Economic Studies, University of Finance and Administration, Estonská 500/3, 101 00 Prague, Czech Republic

Mathematics, 2022, vol. 10, issue 15, 1-23

Abstract: Many scientific fields need to know how human systems develop. From an economic point of view, the main factors of system output change are changes in the quantity of inputs (extensive factors) and changes in efficiency (input quality and productivity, intensive factors). The growth accounting (GA) method is used for the calculation of the impact of both factors on GDP change. However, its interpretation is sometimes difficult, and GA does not cover all of the possible situations of system (country economy) development. This article uses mathematical tools to derive new indicators (dynamic intensity indicator and dynamic extensity indicator) that clearly count and express how the changes in intensive or extensive factors contribute to the output change in any system. The indicators come from the complex system development typology analyzed in the text. The typology covers all of the relationships among the inputs, their efficiency, and their output. The article shows the use of these indicators in macroeconomics when examining the intensity of GDP development in the World’s major economies during the period of 1961–2021 and in microeconomics while investigating the intensity of the development Apple in the period of 1999–2021. We further discuss how indicators reduce managerial risk and uncertainty and their pros and cons.

Keywords: nonlinear model; decision analysis; typology of system development; input; output; efficiency; dynamic intensity and extensity parameters (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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