The Scenario Modeling of Households’ Activities in the Overall Economic Structure of the State

Abstract

The main aim of the publication is researching the activities of household sector in the overall economic structure of the State using the modern economic-mathematical methods and models of macroeconomic processes. The research showed that households’ expenditures have a significant impact on the aggregate output of products (AOP), especially for industries where their share is the largest. The results of a scenario modelling of the dependency of the AOP on households with regard to industries, using the cross-industry balance model, suggest that the proposed methodology can be used to plan and forecast economic growth in terms of development of scenarios of their impact on the overall economic result. It is determined that the main factor of adaptation of households in conditions of economic instability is small-sized entrepreneurship as a source of formation of incomes in the form of profit and mixed income. Ensuring this process is meant to increase the level of human capital by increasing consumer spending in the spheres of education and health.

Keywords

• household
• aggregate output of products
• income
• small-sized entrepreneurship