ECONOMIC-MATHEMATICAL MODEL OF THE INFLUENCE OF GOVERNMENT POLICY ON THE ECONOMY OF AGRICULTURAL INDUSTRY

• Main Authors: І.Д. Фартушний, К.М. Пузирна
• Format: Article
• Language: English
• Published: Igor Sikorsky Kyiv Polytechnic Institute 2018-05-01
• Series: Ekonomìčnij Vìsnik Nacìonalʹnogo Tehnìčnogo Unìversitetu Ukraïni "Kiïvsʹkij Polìtehnìčnij Institut"
• Subjects: державна політика; ринок озимої пшениці; теорія рівноваги Вальраса, еластичність попиту та пропозиції; задача Коші; система диференціальних рівнянь
• Online Access: http://ev.fmm.kpi.ua/article/view/132233

In today's economic and political conditions, the agricultural sector of Ukraine, which provides the population with important consumption products, needs significant support from the state in order to preserve sustainable production and prevent the emergence from the market of both large corporations and small farms. An important issue is the choice of the most effective state tools and their rational balance to ensure the maximum profit of enterprises and the state. This paper examines the economic-mathematical model of the influence of government instruments on the winter wheat market development, presented as a system of differential equations with initial conditions (Cauchy's problem), solved in numerical form using the software package Matlab, using the Runge-Kutta method of 4-5th order. The model takes into account the negative influence of weather conditions, because of which the part of the harvest is lost, fertilizer and field processing costs, simple fields under the rules of the crop rotation, the payment by enterprises of taxes to the state budget in connection with economic activity, costs for processing raw materials to the state the finished product that complies with the Gafta standard, the procurement of sowing materials by entrepreneurs from abroad to sow the current area of the fields. The price change for winter wheat in the market is based on the coefficient of elasticity. As a tool of state policy, investment in the production process (government subsidies) and the regulation of the supply of finished products in the market through the processing of raw materials for the finished product at the expense of public funds are selected. It is determined that the second tool is the more effective tool. In order to determine the optimum amounts of state influence and their optimal correlation in this model, it is necessary to maximize the total volume of profits of enterprises and the state, taking into account that at each moment of time the demand deviates from the offer no more than the predetermined value, in order to satisfy the equilibrium of Walras.