A Nonlinear Open von Neumann Model and Its Application

Csernatony, C., Ligeti, I., & Medvegyev, P. (1984). A Nonlinear Open von Neumann Model and Its Application. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-84-002

Preview

Text CP-84-002.pdf Download (700kB) | Preview

Abstract

The aim of this paper is to introduce a new generalization of the von Neumann model and to show how this model can be applied in practical economic planning.

The von Neumann theory of growth is one of the best known models in mathematical economics. Since 1937, when von Neumann first published his famous article, many authors have tried to generalize his results and, therefore, have investigated in great depth the properties of the original model and those of its various generalized forms. Kemeny, Morgenstern, and Thompson (1956) changed von Neumann's original assumptions and made the model more plausible for economic applications. In 1960 Morishima introduced a nonlinear generalization of the model, in which the input and output matrices are nonlinear functions of variables. In 1974 J. Los, introducing revenue and cost matrices that are generally different from the usual input and output matrices, extended the von Neumann theory of growth to the case of asymmetric models. Morgenstern and Thompson (1976) opened the model by including foreign trade, as well as taxes and subsidies. The model presented in this paper is an open, nonlinear, and asymmetric generalization of the von Neumann model.

Actions (login required)

View Item