Sustainable Development in Block Random Systems

Abstract

In paper 1 stability of a block random model was studied as a possible model for economic systems Crisis means significant and quick change in the number of participants of a system It was proved that a smaller system is more stable than a larger one with the same parameters Further the number of participants can significantly alter without any outer interactions resulting in crisis In paper 2 stability properties of a block random model with fixed number of participants was investigated It was studied that how two parameters of the model density matrix and dispersion influence behavior of the system It was shown that proportionally smaller in absolute value density matrix results in a shorter cycle time Also larger dispersion makes the cycle time shorter It was suggested that a longer cycle time makes it possible the participants to adapt themselves to circumstances and thus to avoid crises In this case repeated recessions and growths appear which can be called structural cycles In the present paper we investigate connection between real parameters of economy and parameters of the block random model We point out that base rate bounded by an appropriate level is useful for working the system without any crisis As a result of these studies it has become clear that sustainable development can be defined in terms of avoiding crisis rather than achieving growth