INDECS, Vol. 2 No. 2, 2004.
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
Publication date:
20.12.2004.
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