Solution to “the Kuznets Riddle”

Journal of Optimization in Industrial Engineering

مقاله 15، دوره 14، Special Issue - شماره پیاپی 29، فروردین 2021، صفحه 117-125   

شناسه دیجیتال (DOI): 10.22094/joie.2020.677840

نویسندگان

Ihor Skvortsov¹؛ Olena Zahoretska^{* 2}؛ Oksana Musiiovska³؛ Anatolii Havryliak³

¹Department of Business Economics and Investment,Lviv Polytechnic National University, Lviv, Ukraine.

²Department of Business Economics and Investment, Lviv Polytechnic National University, Lviv, Ukraine,

³Department of Business Economics and Investment, Lviv Polytechnic National University, Lviv, Ukraine.

چکیده

S. Kuznets's study that the average propensity to consume is a constant value were nexpected because they denied one of the basic provisions of the Keynesian theory. This fact was called "the riddle of Kuznets".  F. Modigliani and M. Friedman, using the hypothesis of the life cycle and the concept of constant income, proposed two options that explain its solution. But models should not explain, but give a method of solution. The most controversial is the indicator of autonomous consumption. In the first model, it grows, and in the second it goes to zero. Creation of a method of simulation of consumption functions based on common methodological principles for the consideration of micro and macroeconomic systems. Having constructed a model that objectively describes the activity of a separate enterprise, the primary and primary links of the macroeconomic system, we can explore the whole system. At the exit of the economic system we consider two functions of the offer - cost and cost-price, and one demand. These functions form two types of Keynesian cross, which define two points: break-even and economic power (equilibrium In a three-dimensional space a chain of transformations is considered: profit, investments, fixed assets, growth of depreciation (constant costs) and output. The condition for the formation of a "proportional development economy" - the average propensity to consume should remain unchanged, which is achieved when the marginal values of the multipliers of fixed costs and return on assets are constant. Such periods were explored by S. Kuznets.

کلیدواژه‌ها

Consumption functions؛ Keynesian cross؛ economics of proportional development؛ types of multipliers

مراجع

Blauge M. Keynesian system //= Economic Theory in Retrospect. – M.: A Business, 1994. – P. 607-629. – XVII, 627 p.

Blumin I.G. The value of Keynesianism/ / Criticism of bourgeois political economy: In 3 volumes. – М.: Publishing house of the Academy of Sciences of the USSR, 1962. - T. III. The crisis of modern bourgeois political economy. - p. 273-305. 379 p.

Gontareva, I., Maryna, B., Babenko, V., Perevozova, I., Mokhnenko, A. (2019). Identification of efficiency factors for control over information and communication provision of sustainable development in higher education institutions. WSEAS Transactions on Environment and Development. Vol. 15, рр. 593-604.

Keynes: The Return of the Master. – L.: Allen Lane (UK) Cambridge, MA: PublicAffairs (US), 2009. – 240 p.

Skidelsky R. John Maynard Keynes. 1883-1946. Economist, philosopher, statesman (2 vols.) / Per. from English - Moscow: Moscow School of Political Studies, 2005. - 1600 p.

Keynes J. General theory of employment, interest and money. Favorites. - M: 2007. – 960 p.

Vechkanov G.S., Vechkanov G.R. Macroeconomics: a textbook for universities. - SPb: 2011. – 448 p.

Malyarets, L., Draskovic, M., Babenko, V., Kochuyeva, Z., Dorokhov, O. (2017). Theory and practice of controlling at enterprises in international business. Economic Annals-ХХI, Vol. 165, Iss. 5-6, 90-96. doi: https://doi.org/10.21003/ea.V165-19

Thaler R. Irving Fisher: Modern Behavioral Economist // The American Economic Review. – 1997. – Vol. 87. – P. 439–441.

Dimand R. The Fall and Rise of Irving Fisher's Macroeconomics // Journal of the History of Economic Thought. – 1998. – Vol. 20. – P. 191–201.

Skvortsov І.B. Effectiveness of investment process: methodology, methods and practice: Monograph. - Lviv: Publishing house National National University “Lviv Politechnika”, 2003. – 312 p.

V. Dmitriev Economic essays.  – М., 1904. – 352 p.

Skvortsov І.B. Strategy: Monographs / І.B. kvortsov, O.Ya.Zagoretska, U.O. Balik - Lviv: МІС, 2012. – 340 p.

Skvortsov I.B., Psuy M.S., Shved L.R., Anisimova M.V. Economical plan of the operative work of the company: Monograph. - Lviv: Publishing house “Magnolia”,2018. – P. 181 –345. – 548 p.

 Babenko, V. (2019). Formalization of the Model of Management of the Technological Innovations. CEUR Workshop Proceedings, vol. 2393, pp. 595-602. Online, http://ceur-ws.org/Vol-2393/.

 Malyarets, L. M., Babenko, V. O., Nazarenko, O. V., Ryzhikova, N. I. (2019). The Modeling of Multi-criteria Assessment Activity in Enterprise Management, International Journal of Supply Chain Management, vol. 8, no. 4, pp. 997-1004.

Ramazanov, S., Antoshkina, L., Babenko, V., & Akhmedov, R. (2019). Integrated model of stochastic dynamics for control of a socio-ecological-oriented innovation economy. Periodicals of Engineering and Natural Sciences, vol. 7, no. 2, pp. 763-773. doi:http://dx.doi.org/10.21533/pen.v7i2.557