Mathematical model of estimation of production funds of small business

Production funds of small business (SB) have no formal definition and are not a reporting indicator. We offer the determination of cost of such funds within the method of creation of «capital» production functions (PF) via data about production investments (an indicator of the reporting of SB), expenses of other factors and levels of production which we offered earlier (V. K. Gorbunov and A.G. Lvov, 2012). In this method the equation of «effective funds» dynamics on the interval of object observation is included into econometric system of PF parameters’ estimation. An initial value of effective funds is the estimated parameter as well as parameters of used PF. The problem of simultaneous estimation of these parameters is ill-conditioned one. Its regularization is provided by introduction of additional relation between initial and final values of effective funds. The example of an estimation of SB production funds in Volga Federal District is presented.