Original scientific paper

Accumulation and Consumption in Microeconomic Systems

Serghey Amelkin ; Program Systems Institute of the Russian Academy of Sciences, Pereslavl-Zalleskij

Abstract

Two main processes are common for an economic system. They are consumption and accumulation. The first one is described by utility function, either cardinal or ordinal one. The mathematical model for accumulation process can be constructed using wealth function
introduced within the frame of irreversible microeconomics. Characteristics of utility and wealth functions are compared and a problem of extreme performance of resources exchange process is solved for a case when both the consumption and accumulation exist.

Keywords

irreversible microeconomics; accumulation; consumption; wealth function; maximum income determination problem

Hrčak ID:

76880

URI

https://hrcak.srce.hr/76880

Publication date:

20.12.2004.

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