CAPITAL GROWTH MODELS AND THEORY OF LOGISTIC CAPITAL MANAGEMENT. NEW APPROACH TO ECONOMICAL CRISES

Abstract

Classical growth models traditionally are used for evaluation of economical growth or other economical indicators. Exponential growth, compound interests – these are principles of growth measurement, which are used to evaluate and calculate cash flows, capital flows and return of investments in nowadays economics. Therefore growth can not be endless. Theory of logistic management of capital characterize by estimating limitation of growth. Theory says, that particular specific finite capital (investment) capacity exists, which describes maximum quantity of capital, which can be effectively assimilated in certain environment. Research goal is to present and to compare most popular classical growth models, to present Theory of logistic management of capital as well as briefly present possibilities of using of a theory to analyze economical phenomenon, so called economical crisis. Methods of comparable and mathematical analysis, analytical research method were used in this paper. Further researches of this area can help to detect reasons of formation of economical crises and identify formation of bubbles in economies. Use of research results in practice, i.e. identification of initiation of crisis (or bubble phenomenon) in time, allows taking timely actions which can soften negative consequences of burst of economical bubbles and following them troubles of economics.