Neoclassical Theory Research Articles

Nonlinear trapping in wave–particle interactions in tokamaks

The physics and transport consequences of the nonlinear trapping of the wave–particle interactions on the transit and bounce time scale are investigated by solving drift kinetic equation including collisions. The nonlinear particle dynamics is governed by a new set of coupled evolution equations for the phase of the wave, the toroidal component of the canonical momentum (radial motion), and the particle energy. The resonant particles are trapped nonlinearly in the phase space in a pendulum-like motion to resolve the linear resonance. The trapping mechanism is similar to that of the superbananas in the neoclassical theory. The nonlinear particle dynamics is employed to facilitate the solution of the drift kinetic equation. It is shown analytically that the particle distribution in the nonlinearly trapped region is flattened when a term of the order of is neglected. Here, δA is the typical magnitude of the normalized perturbed wave field. The trapped and barely circulating particles diffuse collisionally in the phase space. Transport fluxes, wave–particle energy transfer rate and nonlinear damping rate are calculated. The transport coefficients have a new analytic scaling U in the context of the wave–particle interaction, and can be significant even for a small amplitude wave in tokamaks. Here, ν is the collision frequency, r is the minor radius, and U is a function of the wave frequency, aspect ratio, magnetic shear, and mode numbers. It is estimated that when δA ∼ 10−4 for the magnetic perturbation, alpha particle energy loss rate is comparable to that of the neoclassical theory. The energy transfer rate is proportional to part of the particle flux, a new relation, and scales as ν ; the nonlinear damping or growth rate ν .

Wendelstein 7-X on the path to long-pulse high-performance operation

The Wendelstein 7-X project is aimed at demonstrating that an optimised stellarator is an attractive candidate for a fusion reactor. This requires the achievement of a number of technical and physics goals. Several of these goals have already been achieved in the first three experimental campaigns. We shall exemplify this by a number of results. One important goal is the demonstration of quasi-steady-state operation at high plasma density and temperature for half an hour, which encompasses the physical and technical requirements of stable operation with density and impurity control, cw heating, water-cooled targets, particle exhaust, and an appropriate control and data acquisition system for long-pulse operation. In the previous experimental campaigns, with uncooled targets, stationary discharges for up to 25 s with 5 MW heating power and up to 100 s with 2 MW heating power were achieved. For the next operational phase, to start in 2022, water-cooled targets are being installed, water cooling will be provided for all first-wall components, and a number of further upgrades to plasma heating, vacuum and fuelling systems as well as diagnostics will become available. With this equipment, the further goals of the project will be tackled, including the stepwise extension of discharge intervals to the multi-minute range. The experimental results so far have confirmed the neoclassical theory underlying several of the optimisation goals. At the same time, they showed that an optimisation is also required with respect to anomalous transport. In the future operational phases we aim at building a solid theoretical, experimental and technical foundation for the design of a next-step stellarator device.

Dynamic decision making under ambiguity: An experimental investigation

Neoclassical economic theory assumes that whenever agents tackle dynamic decisions under ambiguity, preferences are represented by the Subjective Expected Utility (SEU) model and prior beliefs are updated according to Bayes rule, upon the arrival of partial information. Nevertheless, when one considers non-neutral ambiguity attitudes, either the axiom of dynamic consistency or of consequentialism should be relaxed. Using data from an economic experiment on dynamic choice under ambiguity, we study which of the two rationality axioms people violate, along with the question of whether this violation is part of a conscious planning strategy or not. The combination of the two, allows us to classify non-SEU subjects to three behavioural types: resolute, naïve and sophisticated. The hypothesis of Bayesian updating is rejected for more than half of the experimental population. For ambiguity non-neutral subjects, we find that the majority are sophisticated, a few are naïve and very few are resolute.

Neoclassical Realist Theories, Intervening Variables, and Paradigmatic Boundaries

AbstractExtant neoclassical realist scholarship has identified a range of real-world factors (e.g., state capacity, interest group pressure, strategic culture, and leadership personality) that serve as intervening variables between systemic imperatives and states’ foreign policy behavior. Despite these elaborations, the intervening variable concept remains underdeveloped. In this article, I show that neoclassical realists have lumped together three different types of causal factors under the label intervening variable: (1) moderating factors, (2) complementary factors, and (3) primary causes. Making these distinctions explicit will enable scholars to increase the analytical precision of neoclassical realist approaches, choose appropriate research designs to test them, and define more clearly the paradigmatic boundaries of neoclassical realism vis-à-vis other perspectives.

THE IMPACT OF ECONOMIC EXPECTATION, SOCIAL CAPITAL AND HOPE ON MIGRATION REQUEST AND ACTION

In this study, the factors affecting the request and action of migration are examined with empirical method within the scope of neoclassical economic theories and behavioral economic thought. A survey of a selected sample was analyzed with structural equation modeling. There was a linear relationship between migration and economic expectation, social capital and hope. It was found that the Economic Expectation Variable had a very strong negative effect on individuals' decision to immigrate and desire to migrate (γ = -0.99; t = -17.87). Hope variable has a very strong negative effect on individuals' migration decision and desire to migrate (γ = -0.96; t = -13.66). The Social Capital Secret Variable has a negatively moderate effect on individuals' decision to immigrate and desire to migrate (γ = -0.48; t = -8.19). It was seen that economic and political conjuncture was effective in the decision of migration of individuals. JEL codes: A12, B55, C25, E71, F22

The diverse effects of private competitors on public service performance: evidence from New Jersey’s school system

An important question underlying government policies that aim to introduce competition from the private sector into public service markets, is whether the presence of privately managed service providers affects the performance of public providers. On the one side, neoclassical economic theory would predict that competition from the private sector has a positive effect on public service performance. However, on the other side, institutional theories would predict a negative, or no effect at all. Using a 9-year panel data set of New Jersey schools, we find some evidence for both models. In most cases, the presence of privately managed charter schools is associated with an increase in public school performance, but the expansion of charter schools is associated with a decrease in performance. Our findings suggest that the effects of private competitors on public service performance are diverse and that multiple mechanisms can be at play simultaneously.

Analysisian Analysis of the Impact of SME Financing on Economic Growth in Zimbabwe (2015-2019)

Small and Medium scale Enterprises (SMEs) are important for successful economic growth and social development. There is a global increasing recognition of the importance of Small and Medium Scale Enterprises in terms of supporting overall economic growth and development. The primary purpose of the study was to assess the contribution of SMEs financing towards economic growth for Zimbabwe. Specifically, the study investigated the impact of SMEs financing on GDP growth, Job Creation, Poverty Datum Line, and Revenue Generation. The study focused on the classical and the modern theories mainly the Neoclassical Growth Theory, Finance-Growth Theory, Lending theory, Signaling theory, the pecking order theory and the Access to finance Theory of Change. This study adopted the positivism research paradigm and an explanatory correlational study design since it helped the researcher to comprehend and describe how SME Financing drives economic growth. In this study all registered SMEs who received loans from all commercial banks in Zimbabwe since 2015 represented the entire target population. The SMEs sector was selected due to its importance in Zimbabwe achieving the economic pillar of Vision 2030. The data gathered was presented and analyzed in a way that enabled statistical inferences to be made. Statistical methods of presentation such as time series plots, descriptive statistic tables, Correlograms and Multiple Linear regression model were used to aid comparability and ensure meaningful interpretation. Tests were performed on sample data to ensure that required conditions were met before regression modelling. The model was fitted using Eviews 10 statistical data analysis package. In a correlational study, the researcher examined whether and to what degree a statistical relationship exists between SMEs financing and Economic Growth. This study employed Classical Linear Regression Model (CLRM) to ascertain the statistical relationship between SMEs financing and Economic Growth. To evaluate the appropriateness and validity of the model the study analyzed the properties of the statistical distribution of the residuals generated by the fitted model to check for autocorrelation, heteroscedasticity and normality. The overall significance of the model was also evaluated by inspecting the model’s coefficient of determination (R-squared) and the probability value for the F-statistic. The estimated models found SMEs financing to have a significant positive effect on Economic Growth with respect to GDP Growth and Revenue generation through Tax Formation. However, it was revealed that SMEs Financing has no significant effect on changes in the movement of the Poverty Datum Line. It was also revealed that SMEs financing has failed to stimulate job creation in Zimbabwe due to continued rise in unemployment levels coupled by closure of large corporates. Greater efforts should be made to make available, short, medium and long term loans to productive investments like SMEs as they constitute an integral part of the growth and transformation process of an agro-based economy like that of Zimbabwe. The central Bank of Zimbabwe (RBZ) should ensure that all the SMEs keeps appropriate records of what is required by banks for extension of their credits to individuals. More so, the Reserve Bank of Zimbabwe should strengthen its monetary policy tools in order to stabilize costs of doing business and lending cost. Future studies should therefore consider also investigating the impact of both private equity and public sector investment on economic growth in order to get an exhaustive picture on the implications of financing SMEs, Private Equity firms and publicly listed firms on economic development.

Essence and Concept of Capitalization of Enterprises its Types and Methods of Evaluation

The historical aspect of the development of scientists' views on the company's capitalization is studied in the work, the stages of development of the concept of cost-oriented management are determined. The role and place of market capitalization in the system of indicators of cost-oriented management are determined, modern methodical approaches to the assessment of the value of the enterprise taking into account the indicator of market capitalization are given. The fundamental differences between the areas of application of indicators of market value of the enterprise and market capitalization are established. The current problems of the Ukrainian economy that limit the widespread use of market capitalization in the valuation of companies are outlined, and proposals are made on the feasibility of valuing Ukrainian companies in terms of real capitalization. The importance of enterprise capitalization in the development of a market economy is emphasized. The evolution of the views of foreign scientists on the capitalization of enterprises has been studied. It is established that the economic essence of the capitalization of enterprises, as well as any asset, is the present value of future income generated by this asset. Bringing future income to the present is a process of discounting. The theory of capitalization of the company in its modern context began to be formed by neoclassical economists from the end of the XIX century. and gained popularity in the second part XX century. The theory of capitalization has given impetus to well-known neoclassical theories of corporate finance, such as the irrelevance theorem, risk theory, investment portfolio optimization theory, arbitrage pricing theory, and so on. It is established that according to the theory of capitalization, the capitalization of the enterprise and the market value of the enterprise are identical concepts, although the methods of their calculation differ. The theory of capitalization has given impetus to the development of many modern financial theories, which are currently under development and improvement.

Redrawing borders, reshaping orders: Russia’s quest for dominance in the Black Sea region

ABSTRACT Since Russia’s annexation of Crimea in March 2014, severe limitations have been placed on Ukraine’s coastal state rights and navigational freedoms in the Black and Azov Seas and the Kerch Strait. The “Kerch Strait clash” in November 2018, which resulted in the Russian capture of three Ukrainian naval vessels in international waters south of the strait, can be seen as the temporary culmination of tensions that have been building up over a longer period. In violation of international law and bilateral agreements, Russia has in recent years pursued an increasingly assertive and revisionist policy in the region and sought to turn the maritime spaces on the country’s southwestern flank into a “Russian lake”. This policy is affecting not only the security and economy of neighbouring states such as Ukraine and Georgia, but also the strategic balance in the southeastern corner of Europe. Drawing on empirical evidence derived from Russian, Ukrainian and Western sources, as well as insights from neoclassical realist theory, this article discusses legal, economic and security aspects of Russia’s ongoing quest for a dominant position in the Black Sea region.

Analysis and Forecasts of the Demand for Imported Wine in China

The aim of this study is to investigate the long-term determinants of China’s imported wine demand and to forecast wine imports from 2019 to 2023 using econometric methods. Auto-regressive distributed lag models are developed based on neoclassical economic demand theory to investigate the long-term determinants of China’s demand for imported bottled, bulk, and sparkling wine from the top five countries of origin. The empirical results demonstrate that income is the most important determinant of China’s imported wine demand, and that price only plays a significant role in a few markets. Substitute and complement effects are identified between wines from different countries of origin and between imported wines and other liquids. China’s imported wine demand is expected to maintain its rapid growth over the forecast period. Bottled wine will continue to dominate China’s imported wine market. France will have the largest market share in the bottled wine market, Spain will be the largest provider of bulk wine, and Italy will hold the same position for sparkling wine. This is the first study to use a single equation with the general to specific method rather than a system of equations to estimate and forecast China’s demand for imported bottled, bulk, and sparkling wines from different countries of origin. The more specific model setting for each country of origin improves forecasting accuracy.

Some notes on Gossen’s “submerged and forgotten” approach to consumption and time

Hermann Heinrich Gossen has traditionally been considered a forerunner of the neoclassical theory of demand. With the long-awaited publication, in 1983, of the English translation of Gossen’s book, its editor, Nicholas Georgescu-Roegen, saw in The Laws of Human Relations and the Rules of Human Action Derived Therefrom the roots of a wholly different theory of consumption choices than that generally accepted, one in which the flow of time plays a non-trivial role. However, Georgescu-Roegen’s interpretation did not object to Gossen being a precursor of the subjective theory of value. The paper argues, with evidence from the works of Gossen, Jevons, Menger and Walras, that, contrary to this interpretation, the theoretical connection between Gossen and the marginalist school is unwarranted in that Gossen, contrary to the early marginalists, was not concerned with adding to the theory of exchange the demand side which the classical British tradition had neglected. In fact, Jevons and Walras, concerned with building a demand-and-supply theory of price and with their relative merits as discoverers of the new approach, “elected” Gossen as their common precursor, despite the fact that Gossen explicitly rejected the idea that his laws of pleasure could bear any implication for the theory of exchage.

Combined coarse-grained molecular dynamics and finite-element study of light-activated deformation of photoresponsive polymers

The azobenzene-containing crosslinked liquid crystalline polymer is a potential candidate for a stimuli-responsive soft robot, as it provides contactless actuation without the implementation of any separate component. For facilitating practical applications of this novel material, complicated and predefined motions have been realized by tailoring the chemical structure of the polymer network. However, conventional multiscale mechanical analysis, which utilizes the all-atom molecular dynamics to represent a microscopic model, is unsuitable for handling diverse material design parameters due to excessive computational costs. Hence, a multiscale optomechanical simulation framework, which combines the coarse-grained molecular dynamics (CG MD) and the finite-element (FE) method, is developed in this study. The CG MD simulation satisfactorily reproduces the light-induced phase transition and photosoftening effect on the mechanical properties. In particular, using the mesoscale analysis, the presented methodology can treat diverse morphology parameters (liquid crystal phase, spacer length, and crosslinking density) to observe the associated photodeformations. The photostrain and elastic modulus profiles in terms of photoisomerization ratio are implemented into the continuum-scale governing equation, which is based on the neoclassical elasticity theory. To efficiently reflect the light-induced large rotations of liquid crystal mesogens and the corresponding geometric nonlinearity, a corotational formulation is employed in the FE shell model. We examine the mesostructural-morphology-dependent photobending deformations of the nematic and smectic photoresponsive polymers (PRPs). In addition, the mesoscopic-texture-mediated unique 3D deformations are investigated by modeling the topological defects. This study offers insight into the engineering of PRP materials for designing the mechanical motions of smart actuators.

The complexity of the consumer problem

A literal interpretation of neo-classical consumer theory suggests that the consumer solves a very complex problem. In the presence of indivisible goods, the consumer problem is NP-Hard, and it appears unlikely that it can be optimally solved by a human. Two implications of this observation are that (i) households may imitate each other’s choices; (ii) households may adopt heuristics that give rise to the phenomenon of mental accounting.

МОДЕЛИРОВАНИЕ СОЦИАЛЬНО-ДЕМОГРАФИЧЕСКОГО РАЗВИТИЯ СЕЛЬСКИХ ТЕРРИТОРИЙ РЕГИОНА НА ОСНОВЕ КРИТЕРИАЛЬНОЙ ГРАДАЦИИ

The nature of demographic processes: reproductive behavior, migration behavior, health status and life expectancy in modern Russia determined the relevance of the study. A large number of scientists have been studying the relationship between social, economic and demographic criteria, in particular, hypothetical modeling of factors of socio-demographic development, which were considered in the article, can be traced in the works of neoclassical economic theories of migration. The article has developed and empirically confirmed a hypothetical model of socio-demographic development of rural territories, based on the assumption that the dynamics of migration (D-indicators) of the rural population of the regions graded, according to the selected criterion for the n-number of groups, on their real incomes (S-indicators), proving the statements of neoclassical theories of migration that the incentive to move is an increase in income. The presented model consists of six stages. At the first stage, the hypothesis was put forward that the heterogeneity of the income of the population, depending on the region of residence, inversely affects the migration processes in them; on the basis of this, inequalities were constructed. Further, the graduation criterion was determined – the districts of the region are divided into six groups depending on the wages of employees of agricultural organizations. At the third stage, the model indicators (S and D) were determined, then during the study the hypothesis was empirically confirmed. At the last stage, the possibility of reducing socio-demographic tension in rural areas of the region is justified and the potential for intensification and expansion of economic activity of socio-demographic development of rural areas of the Saratov region with salary gradation is calculated.

ВИКОРИСТАННЯ МЕТОДІВ ОЦІНКИ ЕКОНОМІЧНИХ РИЗИКІВ ДЛЯ ПРИЙНЯТТЯ РІШЕНЬ ЩОДО ІНВЕСТУВАННЯ

The article uses methods of quantitative evaluation of economic risks that allow in conditions of uncertainty to provide an industrial enterprise with information on a less risky investment project for the adoption of a managerial decision. Several methods for assessing the risk of investing are used: the size of the dispersion, the value of the coefficient variation, the size of the semivariation, the size of the coefficient of semivariation, the value of the coefficient of asymmetry. Dispersion is a statistical term that describes the value range values expected for a particular variable. Dispersion is used in studying the variability of profits from a specific trading strategy or investment portfolio. This is often interpreted as a degree of uncertainty and, therefore, the risk associated with a certain portfolio of securities or investments. Semiivariation is an indicator of data that can be used to assess potential investment risks. Semivarianity is calculated by measuring the dispersion of all observations that fall below the middle or target data set. Neoclassical theory goes out for understanding that risks are just unfavorable scenarios for an investor company. Therefore, it is necessary to take into account the unfavorable deviations. When the management subject is loyal to risk, then it is necessary to use the coefficient of semivariation, which can also be determined which of the projects. If the company wants to successfully investigate the project, it is important to identify situations where the probability and magnitude of a positive (or negative) result is much larger than the opposite result. Understanding asymmetric risk is crucial for making correct decisions. The ability to identify asymmetric risk helps to avoid potentially dangerous situations where there are not enough errors. It also allows you to use the opportunities for investments where there are several ways to win. The criterion of maximum asymmetry is the minimum risk criterion. The results of the quantitative assessment of economic risks enable to substantiate the economic efficiency of investment projects.

THE PECULIARITIES OF INDUSTRIAL ENTERPRISES’ PROFIT TAXATION IN A DIFFERENTIATED APPROACH

This article studies the problem of improving enterprise profit taxation, the ways to solve it, and one of the main problems of the modern system of the enterprises taxation — how it is connected to the production efficiency. By solving it, we can determine the differentiation of the tax rates to the enterprises’ profit. Within its methodological framework, the author proposes to use the theory of surplus value. In order to spread the global methods for solving the issues of improving the taxation profit of enterprises and ensuring the economic efficiency and growth, the principles of neoclassic marginal theory are used. The system of indicators — signs and criteria — provides evidence for differentiating industrial enterprises into groups for a more optimal taxation of their profits. The author provides suggestions for forming the rate of the profit tax to stimulate the increase of production efficiency and reinvestment of funds for its development. The algorithm for calculating the profit tax rate assumes using the index of the norms of surplus value — profitableness of labor. This article proposes using a matrix for classifying industrial enterprises into groups, defining the level of the tax rates to profit for each of them based on the developed algorithm together with the level of production efficiency for 2018. For industrial enterprises, special industrial level of indicators — the signs differentiation — are considered: the structure of capital, the standard of profit, the profitableness of labor, and the results of their profit taxation using the method of free balance, the normative method, the modern and the proposed tax profit systems. In the case of the industrial enterprises, the relevance of the proposed reforms of the taxation of profit is explained. The results of research constitute the methodological basis of developing a more effective mechanism of taxing enterprises’ profit, which is especially necessary when realizing anti-crisis economic politics.

The Opportunities and Challenges That the Belt and Road Initiative Brings: Analysis from Perspective of China-Pakistan Economic Corridor

Driven by the Belt and Road Initiative (BRI), China and Pakistan as all-weather strategic partners announced a big move to build the China-Pakistan Economic Corridor (CPEC) in 2015, aiming to link Pakistan’s Gwadar Port to China’s Xinjiang autonomous region. CPEC leads two countries into economic cooperation in critical areas including manufacture, energy, logistics and transport. The Belt and Road initiatives (BRI) project could bring economic avenues to Pakistan and foster regional and cross-regional economic growth as well as trade integration between Central Asia, South Asia, West Asia and East Asia. This paper not only makes a theoretical analysis of BRI and CPEC but also explores the reason why CPEC may succeed from the perspectives of the balanced growth development theory and the neoclassical growth theory. Theoretically, openness and massive capital are key factors for less developed economies to transfer into a sustainable growth state. However, these countries are disadvantageous in both openness and capital funds. Therefore, an external big push of massive investment is needed for them. Only through investing simultaneously in most complementary industries and regions, can they make economies to step into the growing path, and then to grow sustainably. Once the big push ignites the growth engine, economies acquire advantages of catch-up mechanism and converge to steady state. Therefore, CPEC focusing on aid-for-trade as well as substantial infrastructure development is capable of boosting economic prosperities for both China and Pakistan. In addition to theoretical analysis, this article identifies different types of socio-political impediments against BRI and CPEC, ranging from environmental aspects to socio-political structures. Pakistan has long been struggling with socio-political factors: low literacy rate, turbulent political situation, terrorist attacks, crimes, wars and corruption. All these negative factors pose essential challenges for transnational investment and infrastructure projects.

The Value of Urgency

Neoclassical microeconomic theory postulates that the value of time is a fraction of an individual’s hourly wage. When taken to the marketplace, however, this value appears to depart from theoretical predictions. To reconcile them, we conceptualize the value of urgency, which reflects penalties for lateness. Observing users repeatedly entering tolled lanes in freeways, we estimate individual hedonic price functions, and show that the value of urgency accounts for 87 percent of total willingness-to-pay for time savings. We document how traditional approaches for cost-benefit analysis fail to detect this benefit, underestimating the true value projects deliver to a large number of individuals.

Modeling of Economic Growth Vis-a-Vis Modeling of Economic Development: Dichotomies Characteristic of General Equilibrium

It is well established that economic growth that is funded, in entirety, by technical change equates to economic development. This study provides formal theoretical evidence that production functions inherently always are inappropriate to modeling of economic development. In stated respect, modeling of economic development requires unraveling of a function that is not well defined, that is, not `one-to-one' from a topological space that is composition of the topological space for real GDP Per Capita and topological space for income inequality - a proxy for beneficial (respectively, detrimental) effects of arrival (respectively, non-arrival) of technical change - to the topological space for economic development. Modeling (of economic development) necessarily transpires in context of choice under uncertainty, because economic agents, all of whom are rational can, in presence of shortfalls to estimates for technical change that facilitate full employment embark on substitution of `government largesse' for technical change as source of employment and growth. Uncertainty as to each of future realizations for technical change, and choices to transpire domiciles modeling of economic development in context of choice under uncertainty, as such rationalizes transformation of similar amounts of growth into heterogeneous realizations of economic development. An important fallout of study findings is inference of integrity of models of neoclassical or endogenous growth theory, all of which arrive at necessity of determinism of evolution of technical change for success at workouts of models of economic growth. Study findings reiterate importance of searches for new approaches to modeling of economic development.

Человеческий капитал и рост региональных экономик

This study examines the contribution of human capital accumulation to regional economic growth using panel data for 82 subjects of the Russian Federation over 2002–2019. This paper aims to test the hypothesis that in the long-run equilibrium there exists a connection between economic growth and human capital accumulation in the regions of Russia. From the point of view of econometrics, it would mean that we should refute the hypothesis that there is no cointegration of time series describing the aforementioned variables. General theoretical framework was drawn from the neoclassical growth theory, and panel data econometrics suggested the appropriate empirical methodology. Pooled mean group and fully modified least squares estimators were applied to an autoregressive distributed lags model based on the Solow model. The results indicate that accumulation of human capital has a positive and statistically significant long-term impact on the rate of growth of per capita income and that these variables are cointegrated. Such calculations allow us to make the following conclusions: per capita GRP is cointegrated with physical and human capital on the regional level. The cointegrating equation ‘explained’ more than 90% of per capita GRP variance. Human capital accumulation had a significant positive impact on per capita GRP growth in the long run; such impact exceeded the impact of physical capital accumulation. The positive impact of human capital accumulation on per capita GRP growth surpassed the negative elasticity of growth GRP by the amount of resource excluded from the real sector to provide support to students and maintain the regional education system. The paces at which regional economies were heading towards the steady state differed which is an evidence that there exist an incredible manifold of ways and means for regions to adjust to disbalancies