Equivalenting Dynamic Inter-Sectoral Balance in Sustainability Issues

Abstract

Since 2017, the Federal State Statistics Service (Rosstat) has published “cost-output” tables on its website. Together with some parts of its statistical database of studies, this helps to create dynamic inter-branch models of a sufficiently high dimension. These models are designed to tackle issues of stability, analysis and improvement of the own dynamic properties of economic systems. Models can be used either independently or integrated into complexes with computable equilibrium models abbreviated as CGE (Computable General Equilibrium), as well as with other agent-focused models. Improvement here is driven by the active use of the theory and methods of linear algebra, differential equations, and operations research. The need to repeatedly solve the complete eigenvalue problem on this path makes the improvement algorithm computationally challenging. Still, among the defined components of the movement, determined by the structure of the economy, there are those uncontrolled and poorly controlled by the parameters of regulation. This makes relevant a formalized reduction of the dimension of the original model, adequate to the problem being solved. The paper introduces a technique of equivalenting high-dimensional dynamic inter-industry models for effective work as part of improving algorithms for the intrinsic/internal dynamic properties of economic systems.