zbMATH — the first resource for mathematics

Modeling dynamic economic systems. Incl. 1 CD-ROM. (English) Zbl 0879.90001
Berlin: Springer. xviii, 339 p. (1997).
The aim of the book is to investigate the construction and behaviour of dynamic processes in economic systems, and to develop models, as essential tools for a better understanding of alternative decisions on economic performance, resource use, and environmental quality.
Part 1 provides an introduction into modeling of dynamic systems, and disaggregation of stocks, while Part 2 presents methods for dynamic modeling: system boundaries in space and time, scheduling flows, positive feedback in an economy, derivatives and lags. Part 3 is devoted to microeconomic models of firms: profit-maximizing in competitive firms, monopolistic collusion, quasi-competitive equilibrium, economic games. Parts 4 and 5 deal with modeling optimal use of nonrenewable, respectively renewable, resources: the development of quantitative and integrated models facing the inherent uncertainty of these complex dynamic economic systems. Chaos theory in economic models is analysed in Part 6 and conclusions are drawn in Part 7. The book includes a CD-ROM providing the modeling software STELLA and MADONNA. The authors selected these programs since they combine the strength of iconographic programming style and the speed of (Windows and Macintosh) desktop computers. STELLA proves to be a powerful programming tool to explore the features of dynamic systems, the development of modeling skills, and the distributive collaboration of modelers.
Reviewer: N.Curteanu (Iaşi)

90-01 Introductory exposition (textbooks, tutorial papers, etc.) pertaining to operations research and mathematical programming
91B62 Economic growth models
91B76 Environmental economics (natural resource models, harvesting, pollution, etc.)
91B38 Production theory, theory of the firm
68T35 Theory of languages and software systems (knowledge-based systems, expert systems, etc.) for artificial intelligence