Kuznetsova M.A., Romaniukha Y.A., Goncharova Y.S.

Dnipropetrovsk National University named after O. Honchar, Ukraine

INPUT-OUTPUT MODEL AS EFFECTIVE TOOL AGAINST CRISIS

 

In the 1930s an economic and mathematical input-output model was developed by a Russian-American economist Vasiliy Leontiev. Nowadays this model, that characterizes intersectoral industrial relations in a country’s economy, captures attention of leading economists.

The input-output model uses a matrix representation of a nation’s (or a region’s) economy. It shows that the output of one industry is an input to each other industry. V. Leontiev puts forward the display of this information in the form of matrix. Given input is typically enumerated in the column of an industry and its outputs are enumerated in its corresponding row. This format, therefore, shows how each industry depends on all others in the economy both as customer of their outputs and as supplier of their inputs. Each column of the input-output matrix reports the monetary value of an industry’s inputs and each row represents the value of industry’s outputs.

The dynamic model of IOB has the following form:

A(t)*X(t)+Q(t)*^X(t)+Y(t)=X(t) , where X(t)- gross product in a t-th year ;

^ X(t)=X(t)-X(t-1)- increase of gross product in t-th year comparing with a (t-1)-th year;

Y(t) – the final product in the t-th year;

A(t) – the matrix of direct current raw material costs in a t-th year;

Q(t)- the matrix of direct costs per time in a t-th year, providing a unit of increase in output per unit of time.

The initial data of the model are: Y(t), A(t), Q(t) for all t that equals to 1, 2, … ;

N.I. Veduta, a cyberneticist and a founder of the Scientific strategic planning school is a follower of V. Leontiev. In his book “Social efficient economy”, professor Veduta elaborated the dynamic input-output model and strategic planning, expounded their essence, problems, solutions and their application in the real life of a state.

N.I.Veduta modeled a socially effective strategy of economy, allowing each state that has an abundance of natural and intellectual resources to produce a strategic plan for socially efficient development.

The main aim of the dynamic input-output model is to enhance management decisions at the expense of creation automatic management system. In the scheme of IOB developed by N.I. Veduta, for the first time balances of income and expenses of producers and consumers – government, housekeeping, exporters and importers were systematically coordinated. Dynamic model of IOB was developed with the help of the method of economic cybernetics. It is a system of algorithms, which effectively links the tasks of final users with possibilities (material, labor and financial) of producers of all patterns of ownership. On the ground of this model is determined effective allocation of state industrial investments. Introducing a dynamic model of IOB, the government is able to correct aims of development online subject to clarification of production capabilities and dynamics of the end-consumers’ demand with an allowance for requirements of national and global safety.

In 1998 the scientific researches of N.I. Veduta have been recognized by the International Biographical Centre of Cambridge as outstanding achievements of the XX century. Now the active interest to Veduta’s dynamic model of strategic planning is observed in China , Germany , etc.

Veduta’s model is perspective because it allows to adopt an effective system of economic management, includes a strategic planning and it is a perspective tool in the crisis-free development of world society.

 

The list of references:

1. Ведута Н.И. Социально эффективная экономика / Н.И.Ведута . – М.: РЭА, 1999. – 254 с.

2. ПрослушатьНа латинице   Словарь - Ведута Н.И. Экономическая кибернетика / Н.И.Ведута . – Мн . : Наука и техника, 1971. – 318 с. Открыть словарную статью