A Fuzzy Economic Dynamic Model

Joan Carles Ferrer-Comalat, Dolors Corominas-Coll and Salvador Linares-Mustarós
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Joan Carles Ferrer-Comalat: Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain
Dolors Corominas-Coll: Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain
Salvador Linares-Mustarós: Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain

Mathematics, 2021, vol. 9, issue 8, 1-15

Abstract: In the study presented here, fuzzy logic was used to analyze the behavior of a model of economic dynamics that assumes income to be in equilibrium when it is composed of consumption and investment, that is, when savings and investment are equal. The study considered that consumption and savings depend on the income of the previous period through uncertain factors, and, at the same time, that investment is an uncertain magnitude across various periods, represented as a fuzzy number with a known membership function. Under these conditions, the model determines the factor of income growth and investments required to maintain equilibrium, as well as the uncertain values of income for the different periods, expressed through fuzzy numbers. The study also analyzes the conditions for their convergence and the fuzzy value that income represents in equilibrium.

Keywords: fuzzy logic; fuzzy arithmetic; extension principle; economic models; national income (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
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