Dynamic models used in analysis capital and population

Abstract

From the production function of Cobb-Douglas, we know that production is based on three essential factors. These are the population, capital and financial-material resources. In this article, the authors are concerned about the possibility of establishing a dynamic macroeconomic model in order to analyze the evolution and especially the role of capital and population in the development of the economy. When we speak of development of the economy we apply the general principle that it is a goal of the whole economic activity regardless of countries, geographical areas, development level of each country, the objectives of international bodies and so on. The model used in the study of capital is one that has to be established taking into account the trend up to this moment of the analysis, which according to the factors considered to ensure an increase consequently for the next period. This model must take into account the effect of capital, how it is constituted and especially the harmonized way in which capital is distributed within a national economy, based on the strategy of sustainable or complex economic development in each case. The study of capital is a basic element that ensures an increase in correlation with the other two factors that we talked about future development conditions. As far as the population problem is concerned, this is a defining one in terms of securing the labor force reserve, securing the reserves for the active or employed population. The population increases or decreases according to the birth rate. Natality in turn increases or decreases depending on the existing socio-economic conditions or other aspects to be considered. In the dynamic models used we have to take into account how the population of a country, continent or world population has evolved in order to be able to predict what will happen in the next period. Of course, the change of population is made through inputs (births) and exits (deaths or emigration in the case of a study located in a country or continent). We assume that in order to ensure a proper balance and evolution of the population, it is necessary to take a series of stimulatory measures to ensure the direction of this future evolution. Of course, population growth is determined by a series of statistical variables that taken and included in the analysis model give the perspective of identifying the future evolution trends of this very important indicator at the level of a nation.

Keywords

• dynamic models
• capital
• production
• goods
• cycle
• oscillations
• birth
• death