Indicators of National Economic Behavior

Abstract

Changes in the gross domestic product are examined using the tools of vector analysis. Aim. The purpose of this study is to obtain a differential equation that binds scalar economic indicators with the rate of change of renewable production factors. Then, based on this equation, the study determines an indicator that shows stagnation, recession, or economic growth. Results. The study proved that the rate of change of GDP is equal to the integral of the dynamic product divergence of an economy’s marginal productivity when compared to the rate of change of aggregate production factors. It was found that the rate of change of production factors is equal to an integral of dynamic divergence from the rate of change of aggregate factors. The indicator is obtained from this integro-differential equation. The adequacy of this indicator is demonstrated by analyzing the economy of several European countries.