ARTICLE
ABSTRACT
Most components of the private ownership economy are the mappings independent on time, although they model activities of economic agents which take place in time. Therefore this structure is interpreted as the stationary model in which actions of economic agents on the market are constant on the analyzed time interval. The mathematical properties of the commodity-price space of the private ownership economy could be convenient in analyzing changes in the activities of economic agents. Hence, there is a need to determine how a private ownership economy could evolve over time.
In this context, the aim of the paper is to model evolution of the economy defined in the Arrow and Debreu apparatus by the use of difference equations. As a result, we get a coherent and unified description of the evolution of an economy that can be used, among others, in the analysis of the mechanisms of Schumpeter’s economic development, differently from the methods usually used in the growth theory.
KEYWORDS
private ownership economy, adjustment process
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