A Mathematical Optimization Framework for Economic Growth Forecasting Using Multivariate Dynamic Models

Fuente: Zenodo
Guardado en:
Detalles Bibliográficos
Autor principal: Ravikumar J. Awasare
Formato: Recurso digital
Lenguaje:inglés
Publicado: Zenodo 2025
Materias:
Acceso en línea:
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1866902030863302656
author Ravikumar J. Awasare
author_facet Ravikumar J. Awasare
contents <p><em><span lang="EN-GB">Economic forecasting requires a robust framework that captures dynamic interactions between key macroeconomic variables such as GDP, inflation, capital formation, labor productivity, and technological growth. Traditional linear models fail to capture nonlinear behaviors observed in real economic systems. This paper develops a mathematical framework integrating differential equations, regression modeling, and optimization techniques to forecast long-term economic growth. A Multivariate Dynamic Growth Model (MDGM) is proposed, consisting of coupled first-order differential equations that represent relationships among consumption, investment, capital accumulation, and productivity. The model incorporates economic constraints based on utility maximization and budget limitations. Simulated results demonstrate how different policy interventions—such as increasing capital investment or optimizing tax rates—directly influence growth trajectories. The approach is validated with a sensitivity analysis that evaluates how parameter variations affect stability and equilibrium. The developed mathematical–economic framework provides a reliable, adaptable method for policymakers to predict future economic scenarios and evaluate the effect of reforms.</span></em></p>
format Recurso digital
id zenodo_https___doi_org_10_5281_zenodo_17898192
institution Zenodo
language eng
publishDate 2025
publisher Zenodo
record_format zenodo
spellingShingle A Mathematical Optimization Framework for Economic Growth Forecasting Using Multivariate Dynamic Models
Ravikumar J. Awasare
Economic modeling, differential equations, optimization, growth forecasting, mathematical economics, dynamic systems, econometrics
<p><em><span lang="EN-GB">Economic forecasting requires a robust framework that captures dynamic interactions between key macroeconomic variables such as GDP, inflation, capital formation, labor productivity, and technological growth. Traditional linear models fail to capture nonlinear behaviors observed in real economic systems. This paper develops a mathematical framework integrating differential equations, regression modeling, and optimization techniques to forecast long-term economic growth. A Multivariate Dynamic Growth Model (MDGM) is proposed, consisting of coupled first-order differential equations that represent relationships among consumption, investment, capital accumulation, and productivity. The model incorporates economic constraints based on utility maximization and budget limitations. Simulated results demonstrate how different policy interventions—such as increasing capital investment or optimizing tax rates—directly influence growth trajectories. The approach is validated with a sensitivity analysis that evaluates how parameter variations affect stability and equilibrium. The developed mathematical–economic framework provides a reliable, adaptable method for policymakers to predict future economic scenarios and evaluate the effect of reforms.</span></em></p>
title A Mathematical Optimization Framework for Economic Growth Forecasting Using Multivariate Dynamic Models
topic Economic modeling, differential equations, optimization, growth forecasting, mathematical economics, dynamic systems, econometrics
url https://doi.org/10.5281/zenodo.17898192