Universal Journal of Industrial and Business Management Vol. 2(5), pp. 111 - 118
DOI: 10.13189/ujibm.2014.020501
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Economic Growth, Welfare and Institutional Changes: Game and Aggregate Model


Oleg S. Sukharev *
Institute of Economy Russian Academy of Sciences

ABSTRACT

The problem of economic growth and the impact on him of institutional change is considered in the paper. In the institutional change framework the mechanism of how a change of rules influences on the agents welfare is shown. An aggregated economic model of the system development depending on the initial standard of living, rates of consumption and resources depletion is represented. The model of economic growth, taking into account the institutional changes of the system shows the impact of these changes on the welfare of agents on the example circuit of chess. Example with the game of chess is a scheme to study the impact of institutional changes on the overall dynamics of the economic system, the interaction of agents and distribution of wealth. Basic mathematical equations are obtained based on a graphical representation of the reactions of agents in the game for a variety of options for their interaction. Such "game" schemes are usually not reflected in the classical models of aggregate economic growth is not taken into account the impact of these institutions. In the proposed scheme, the economic changes in the game model, as well as in the aggregate model of economic growth, representing a theoretical model shows the influence of institutional settings on the growth of the economic system.

KEYWORDS
Institutional Change, Economic Growth, Welfare, Aggregate Model, the Speed and Frequency of Economic Change, Effect of Chess Game

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Oleg S. Sukharev , "Economic Growth, Welfare and Institutional Changes: Game and Aggregate Model," Universal Journal of Industrial and Business Management, Vol. 2, No. 5, pp. 111 - 118, 2014. DOI: 10.13189/ujibm.2014.020501.

(b). APA Format:
Oleg S. Sukharev (2014). Economic Growth, Welfare and Institutional Changes: Game and Aggregate Model. Universal Journal of Industrial and Business Management, 2(5), 111 - 118. DOI: 10.13189/ujibm.2014.020501.