Accession Number : AD0693438

Title :   AN OPEN EXPANDING ECONOMY MODEL.

Descriptive Note : Research rept.,

Corporate Author : CARNEGIE-MELLON UNIV PITTSBURGH PA MANAGEMENT SCIENCES RESEARCH GROUP

Personal Author(s) : Morgenstern,Oskar ; Thompson,Gerald L.

Report Date : AUG 1969

Pagination or Media Count : 35

Abstract : The authors extend the generalized von Neumann model to an open model by assuming that there are exogeneously determined export and import prices and that any amount can be exported or imported at these prices. The open model is characterized by means of seven axioms. It is shown, by applying the theory of linear programming, that if four economically reasonable assumptions hold, the open model has at least one solution in which at least one good with positive export price is exported and at least one good with positive import price is imported. It is also shown that, in general, a continuum of expansion rates can be achieved by varying certain control variables. The choice of these expansion rates gives indirectly the choice of a suitable sub-economy and also determined the exports and imports of the economy. (Author)

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), LINEAR PROGRAMMING, COMMERCE, PRODUCTION, MONEY, COMPUTER PROGRAMMING

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE