The purpose of the chapter is to study dynamics of development of economic conflicts and to develop a conceptual model of conflict of socio-economic system as an analog to…
The purpose of the chapter is to study dynamics of development of economic conflicts and to develop a conceptual model of conflict of socio-economic system as an analog to the model of economic cycle.
The author compiles and analyzes the existing conceptual static model of conflict of a socio-economic system. The theoretical basis of the research includes the works of modern authors that reflect provisions of the theory of cycles and devoted to cyclic fluctuations of socio-economic systems. The methodology of the chapter includes the method of dynamic modeling of the process of development of socio-economic systems and the method of formalization (graphic presentation of the obtained results and conclusions). Also, the author uses the complex of general scientific methods within the systemic approach – induction, deduction, analysis, and synthesis.
It is substantiated that the existing conceptual static model of economic conflict, which treats it as a non-recurrent phenomenon in socio-economic system, contradicts its dynamic nature. Instead of this, similarly to the model of economic cycle, a conceptual dynamic model of conflict of socio-economic system is developed, which treats economic conflict as a process that develops according to a certain algorithm and is constantly repeated.
The offered conceptual model of conflict of a socio-economic system as an analogue of the model of economic cycle allows specifying the methodology of studying economic crises, which are manifestations/examples of economic conflicts. This model emphasizes the dichotomic nature of economic conflict (its probable negative or positive consequences), which allows for more precise treatment of economic crisis – which is usually considered to be a negative phenomenon. According to the offered model, crisis is not a phase of economic cycle but socio-economic process that is characterized by cyclic fluctuations. As is expected, the developed model will allow describing the practice of development of modern socio-economic systems with higher precision.
The central task is to define the ties, existing between economic dimensions, which can be expressed in specific relations that require special attention during projecting to ensure they are not disrupted. The development of a computer‐based mathematical and economic model makes it possible to constantly monitor the condition of the entire economy of a given region, both from a global aspect, as well as by its individual sectors of activities.
Economics employs a number of scientific disciplines and their methods, making this approach both multidisciplinary and interdisciplinary. Unlike the variables defined in the model–variables such as domestic product, the volume of fixed funds, the volume of new investment and employment, which change from year to year – the model parameters are considered constants for the entire period to which the model is applied. The parameter estimation indicates the extent to which the defined model is acceptable as a model of future regional economic and tourism growth.
Providing the trends of past are unacceptable in the future period, the author proposes the use of structured policies, above all in the field of investments, to guide development in the desired direction. The author has addressed this particular issue through the example of a specific tourist region, and has tested and designed a development model not only for the regional economic system, but also for its tourism subsystem.
Although they are suited to certain types of decisions, these methods have shown to be inadequate for other types, long‐term strategic decisions in particular, which require so‐called intuitive methods.
Optimal decision‐making in systems' operations is not possible without predictions pertaining to future economic development. The answers to numerous questions in estimating development factors are being provided by new methods, which seek to incorporate and assert an interdisciplinary approach, that is, a systematic approach in preparing decisions.
This methodology can be used in combination with “classical” methods of research, that will can help to recommend optimum development strategies for regional economic development.
The purpose of this chapter is to develop a new perspective model of well-balanced information economy.
The methodological tools of this work are based on application of the method of comparative analysis for comparing the old and the new model of information economy, modeling of socio-economic systems, simplex-method as an algorithm for solving the optimization task of linear programming, related to improvement of the conceptual model of information economy, and the method of formalization for graphical presentation of a new model of information economy.
The developed and presented author’s perspective model of information economy envisages balancing in four main directions: infrastructural possibilities and readiness for their practical usage by society and business; state regulation and market self-management; existing and new information; and external information exchange. Despite the clarity and strictness of conceptual settings, the new model is peculiar for increased flexibility and adaptation to the peculiarities of the socio-economic practice of economic system. Thus, the new model of well-balanced information economy allows overcoming all drawbacks – logical mismatches and contradictions – of the existing (old) model of information economy.
Due to optimization of the conceptual model, its practical implementation in economic activities of modern socio-economic systems becomes possible – as a result of which, with accumulation of experience, it will be possible to assess true value of the idea of information economy’s formation for humanity and the global economic system.
The recent economic/environmental discourse on development issues has led to a new paradigm of development, called here the “eco‐economic development model”, but usually…
The recent economic/environmental discourse on development issues has led to a new paradigm of development, called here the “eco‐economic development model”, but usually known as sustainable development (including both ecological and economic concerns), which has successfully substituted the traditional model of economic development in general acceptance. However, new models usually imply new rules and perhaps a new type of market, yet policy issues within the eco‐economic development paradigm are being addressed with theoretical constructs and a state of mind as if we were still in the old paradigm – perhaps because the nature and the internal structure of the new paradigm are not yet well known and understood, as nobody has apparently looked into this. It should be expected that the two paradigms are not equivalent to each other, and therefore, they should be addressed differently. This paper presents a qualitative approach, from a systematic point of view, which can be used to highlight how different the two paradigms are in terms of structure and policy implications. Then, this information is used to provide an answer to three questions: is the economic development market the same as the eco‐economic development market; if not, how many invisible hands are there in the eco‐economic development market; and what are the environmental, social, and economic policy implications of this situation?. Shows that new paradigms require a new line of thinking to market policy and planning.