«Input-output» unstable dynamic models for an enterprise with neoclassical production function

Abstract

This article describes the formulation of the problem and mathematical model of «input-output» unstable dynamics for an enterprise with neoclassical production function, which is described using second-order linear differential equation, and its stability or instability is determined by the discriminant sign of the corresponding characteristic equation. There are Selected the boundaries of controlled model parameters, which include the rate of accumulation of own funds and the share of borrowings in working capital of the enterprise production scope, including the dynamics of the oscillatory process with a unique amplitude and frequency. Using the results of the empirical unstable dynamics for various combinations of controlled parameters there was made conclusion about their impact on the quality of the working capital transformation and transferring to a sustainable growth line and introduced a concept of «shock» with recommendations of it’s evaluation.