Incorporating Fuzzy Logic in Harrod’s Economic Growth Model
This paper suggests the possibility of incorporating the methodology of fuzzy logic theory into Harrod’s economic growth model, a classic model of economic dynamics for studying the growth of a developing economy based on the assumption that an economy with only savings and investment income is in e...
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doaj-44c16b8109dd4292b04276a0b9af06522021-09-26T00:37:52ZengMDPI AGMathematics2227-73902021-09-0192194219410.3390/math9182194Incorporating Fuzzy Logic in Harrod’s Economic Growth ModelJoan Carles Ferrer-Comalat0Salvador Linares-Mustarós1Ricard Rigall-Torrent2Department of Business Administration, University of Girona, C/Universitat de Girona 10, 17071 Girona, SpainDepartment of Business Administration, University of Girona, C/Universitat de Girona 10, 17071 Girona, SpainDepartment of Economics, University of Girona, C/Universitat de Girona 10, 17071 Girona, SpainThis paper suggests the possibility of incorporating the methodology of fuzzy logic theory into Harrod’s economic growth model, a classic model of economic dynamics for studying the growth of a developing economy based on the assumption that an economy with only savings and investment income is in equilibrium when savings are equal to investment. This model was the first precursor to exogenous growth models, which in turn gave rise to endogenous growth models. This article therefore represents a first step towards introducing fuzzy logic into economic growth models. The study concerned considers consumption and savings to depend on income by means of uncertain factors, and investment to depend on the variation of income through the accelerator factor, which we consider uncertain. These conditions are used to determine the equilibrium growth rate of income and investment, as well as the uncertain values for these variables in terms of fuzzy numbers. As a result, the new model is shown to expand the classical model by incorporating uncertainty into its variables.https://www.mdpi.com/2227-7390/9/18/2194fuzzy logicfuzzy arithmeticextension principleeconomic modelsHarrod’s growth |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Joan Carles Ferrer-Comalat Salvador Linares-Mustarós Ricard Rigall-Torrent |
spellingShingle |
Joan Carles Ferrer-Comalat Salvador Linares-Mustarós Ricard Rigall-Torrent Incorporating Fuzzy Logic in Harrod’s Economic Growth Model Mathematics fuzzy logic fuzzy arithmetic extension principle economic models Harrod’s growth |
author_facet |
Joan Carles Ferrer-Comalat Salvador Linares-Mustarós Ricard Rigall-Torrent |
author_sort |
Joan Carles Ferrer-Comalat |
title |
Incorporating Fuzzy Logic in Harrod’s Economic Growth Model |
title_short |
Incorporating Fuzzy Logic in Harrod’s Economic Growth Model |
title_full |
Incorporating Fuzzy Logic in Harrod’s Economic Growth Model |
title_fullStr |
Incorporating Fuzzy Logic in Harrod’s Economic Growth Model |
title_full_unstemmed |
Incorporating Fuzzy Logic in Harrod’s Economic Growth Model |
title_sort |
incorporating fuzzy logic in harrod’s economic growth model |
publisher |
MDPI AG |
series |
Mathematics |
issn |
2227-7390 |
publishDate |
2021-09-01 |
description |
This paper suggests the possibility of incorporating the methodology of fuzzy logic theory into Harrod’s economic growth model, a classic model of economic dynamics for studying the growth of a developing economy based on the assumption that an economy with only savings and investment income is in equilibrium when savings are equal to investment. This model was the first precursor to exogenous growth models, which in turn gave rise to endogenous growth models. This article therefore represents a first step towards introducing fuzzy logic into economic growth models. The study concerned considers consumption and savings to depend on income by means of uncertain factors, and investment to depend on the variation of income through the accelerator factor, which we consider uncertain. These conditions are used to determine the equilibrium growth rate of income and investment, as well as the uncertain values for these variables in terms of fuzzy numbers. As a result, the new model is shown to expand the classical model by incorporating uncertainty into its variables. |
topic |
fuzzy logic fuzzy arithmetic extension principle economic models Harrod’s growth |
url |
https://www.mdpi.com/2227-7390/9/18/2194 |
work_keys_str_mv |
AT joancarlesferrercomalat incorporatingfuzzylogicinharrodseconomicgrowthmodel AT salvadorlinaresmustaros incorporatingfuzzylogicinharrodseconomicgrowthmodel AT ricardrigalltorrent incorporatingfuzzylogicinharrodseconomicgrowthmodel |
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1716870158228652032 |