Deficit model of exchange for continuous processes with external control

ABSTRACT

A method of constructing a deficit-having model of exchange based on the Markov chain theory for continuous processes with external control is developed, for which the results of the continuous and discrete models are identical. Continuous models allow us to study and predict exchange processes at any moment in time. The deficit model assumes that in the exchange process, when a stationary regime is achieved, those involved have a nonzero balance. The model allows us to determine the external force (control – the actions of the administration) for the realization processes of a specific exchange programme.

KEYWORDS:

• Exchange model
• continuous process
• Markov chain

JEL CLASSIFICATION:

• C01
• C02
• C10
• E10

Disclosure statement

No potential conflict of interest was reported by the authors.