FOUR-SECTOR MODEL ECONOMY

Abstract

The article studies the theory of three-sector economy developed by American Economists A. Fisher and K. Clark. This theory was formulated on the basis of their works published in the mid 20th century. Later it was used as a foundation for the theory of public-economic structures. The present article puts forward a concept of the economic system of the future, i. e. economy of knowledge or economy of information society. The new economic system is being developed now but its certain components can be seen and work today. Production factor of new economy is knowledge, while traditional factors of production are labour and capital as necessary conditions of production. Economy of knowledge can be characterized by processes of economic development but not processes of growth. The forth sector of national economy (quadrum-sector) includes such types of activity as education and science, i. e. those types of activity, which form new knowledge, transform it and proliferate. On the basis of economicmathematic model of general balance by Arrow-Debre the author developed a mathematic model of economy of knowledge, which is presented as space of goods production and consumption.

Keywords

• economy of knowledge
• productivity
• consumption and demand
• factors of production
• knowledge
• capital
• labour
• agrarian economy
• service economy