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A Fuzzy Economic Dynamic Model

Author

Listed:
  • Joan Carles Ferrer-Comalat

    (Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain)

  • Dolors Corominas-Coll

    (Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain)

  • Salvador Linares-Mustarós

    (Department of Business Administration, University of Girona, C/ Universitat de Girona 10, 17071 Girona, Spain)

Abstract

In the study presented here, fuzzy logic was used to analyze the behavior of a model of economic dynamics that assumes income to be in equilibrium when it is composed of consumption and investment, that is, when savings and investment are equal. The study considered that consumption and savings depend on the income of the previous period through uncertain factors, and, at the same time, that investment is an uncertain magnitude across various periods, represented as a fuzzy number with a known membership function. Under these conditions, the model determines the factor of income growth and investments required to maintain equilibrium, as well as the uncertain values of income for the different periods, expressed through fuzzy numbers. The study also analyzes the conditions for their convergence and the fuzzy value that income represents in equilibrium.

Suggested Citation

  • Joan Carles Ferrer-Comalat & Dolors Corominas-Coll & Salvador Linares-Mustarós, 2021. "A Fuzzy Economic Dynamic Model," Mathematics, MDPI, vol. 9(8), pages 1-15, April.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:8:p:826-:d:533523
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    References listed on IDEAS

    as
    1. Joan Carles FERRER-COMALAT & Salvador LINARES-MUSTAROS & Dolors COROMINAS-COLL, 2016. "A Model For Optimal Investment Project Choice Using Fuzzy Probability," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(4), pages 187-203.
    2. Rajarama Mohan Jena & Snehashish Chakraverty & Dumitru Baleanu, 2019. "On the Solution of an Imprecisely Defined Nonlinear Time-Fractional Dynamical Model of Marriage," Mathematics, MDPI, vol. 7(8), pages 1-16, August.
    3. J.C. Ferrer Comalat & S. Linares Mustarós & D. Corominas Coll, 2016. "A Formalization Of The Theory Of Expertons. Theoretical Foundations, Properties And Development Of Software For Its Calculation," Fuzzy Economic Review, International Association for Fuzzy-set Management and Economy (SIGEF), vol. 21(1), pages 23-39, May.
    4. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague.
    5. Yusuf M. Mansur, 1995. "Fuzzy Sets And Economics," Books, Edward Elgar Publishing, number 299.
    6. Nicholas Kaldor, 1961. "Capital Accumulation and Economic Growth," International Economic Association Series, in: D. C. Hague (ed.), The Theory of Capital, chapter 0, pages 177-222, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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