Mathematical model of reproduction system for dynamic multifactor production-consumption balances

The article develops theoretical knowledge of quantitative interrelations and patterns of economic development, as well as of mechanisms of economic management. Methodology and methods are proposed for creating, analysing, and applying the mathematical model of reproduction system for dynamic multifactor production-consumption balance. It is demonstrated that the mathematical model substantially broadens economic analysis opportunities and improves the quality of the economic decisions made. Intersectoral balance is presented as an economic-mathematical model which reflects, in an expanded form, the interrelations of production, distribution, consumption, and accumulation of social product, with a breakdown into economic sectors and as an integral whole of the material and cost aspects of reproduction. Intersectoral balances in kind comprise solely the most important products. In compiling an intersectoral balance, ‘net’ sector notion is used, one of a provisional sector combining the whole production of a given product, dependless of companies’ departmental affiliation and forms of ownership. The transition from real economic sectors to ‘net’ sectors requires a special transformation of real economic data, such as aggregation of sectors and exclusion of intrasectoral turnover.