Sustainable Development in Block Random Systems

Ferenc Juhász

doi:10.34257/gjcstgvol20is4pg1

Abstract

In paper [1], stability of a block random model was studied as a possible model for economic systems. Crisis means significant and quick change in the number of participants of a system. It was proved that a smaller system is more stable than a larger one with the same parameters. Further, the number of participants can significantly alter without any outer interactions resulting in crisis. In paper [2], stability properties of a block random model with fixed number of participants was investigated. It was studied, that how two parameters of the model, density matrix and dispersion influence behavior of the system. It was shown that proportionally smaller in absolute value density matrix results in a shorter cycle time. Also larger dispersion makes the cycle time shorter. It was suggested that a longer cycle time makes it possible the participants to adapt themselves to circumstances and thus to avoid crises. In this case repeated recessions and growths appear which can be called structural cycles. In the present paper we investigate connection between real parameters of economy and parameters of the block random model. We point out that base rate bounded by an appropriate level is useful for working the system without any crisis. As a result of these studies, it has become clear that sustainable development can be defined in terms of avoiding crisis rather than achieving growth.

Highlights

Block Random Model means significant and quick change in the number ofWe briefly summarize description of the model participants of a system. It was proved that a smaller system is presented in [1]
Introduction function FLet us differentiate by t, we get y (t) Lx (t)It is widely accepted that behavior of economy is quasi cyclic
If one thinks of important parameters of economy as interests rates, incomes and wages, corporate profits, inflation, etc. it seems unclear why systems cannot work with different but proportional level of these parameters

Summary

Block Random Model means significant and quick change in the number of

We briefly summarize description of the model participants of a system. It was proved that a smaller system is presented in [1]. In paper [2], stability properties of a block random model with fixed number of participants was investigated It was suggested that a longer cycle time makes it possible the participants to adapt themselves to circumstances and to avoid crises In this a) Economic model Denote X the n-dimensional space which we call. Are the capitals and profits of the participants, In the present paper we investigate connection between real parameters of economy and parameters of the block random model. Rate is kept in an appropriate low level In this case, b) Role of randomness To have a rough picture, we assume that the participants form some groups consisting of behaving elements. From the point of view of our investigations, the most important case is slight unstable block random matrix which means that the large in absolute value eigenvalues of the block random matrix have negative real parts

Effects of the Density Matrix and Dispersion

Summary