Modeling Investment Dynamics

This paper is devoted to the application of a one-dimensional linear model for the quantitative (parametric) description of the dynamics of inertial economic systems. The proposed model in the form of an ordinary differential equation is illustrated using the example of the “prime rate–investment” system. An examination of the nature of empirical data on investments showed that they are formed by an estimator mathematically described by a linear operator. This allows the use of these data to identify the homogeneous equation of the proposed model, which determines the dynamics of the inertial system. The adapted model of the inertial system allows us to achieve the required trajectory of its state using a quantitatively designed and reliably controlled experiment instead of the trial-and-error approach. The model considered in this paper is applicable to problems whose solution ensures the required behavior of the economic system under consideration.