Inframarginal models of spatially allocated economic structures and the analysis of production processes

D. S. Petrenko

Abstract


The article discusses designing of labor division networks. Designing of the economic structure of labor division constitutes the main part of inframaginal analysis. Inframaginal analysis normally uses predefined economic structures, which means that in certain cases some economic structures may be neglected. Such inaccuracies may be not important in the analysis of small enterprises but in the analysis of spatially allocated economic structures, some important aspects may be left unnoticed, which will lead to wrong decisions regarding labor allocation.
To make an enterprise competitive it is essential to understand what is the optimal economic organization and the form of labor division in the given region. If some economic structures are not taken into account in the analysis, the general equilibrium will be incorrect, which will negatively affect the decision-making.
If we use inframarginal models to analyze the production process, it will allow us to take a fresh perspective on the problem. All possible structures of the division of labor are designed by using production factors and goods to reduce the risk of errors in the process of decision-making, which will make the production process of the enterprise more efficient.

Keywords


inframarginal analysis; technology; division of labor; network effects; economic structures; regional economy

Full Text:

PDF

References


Brecher , Özdemir D. (2017) Integrative Production Technology Theory and Applications, Springer.

Busacker R. G., Saaty T. L. (1973). Finite Graphs and Networks: An Introduction with Applications. New York, McGraw-Hill.

Cheng W., Yang X. Inframarginal Analysis of Division of Labor. A Survey. Journal of Economic Behavior & Organization Vol. 55 (2004). 137–174.

Cheng W., Zhang D. (2016). How Might the South be Helped by Northern Technology Yet Harmed by Northern Money? Economic Modeling 55, 83–91.

Chiang A., Wainwright K. (2005) Fundamental Methods of Mathematical Economics. 4th Edition. New York, McGraw-Hill.

Dixon P. (2006) Inframarginal Economics: An Outsider’s View. Economic Papers. 25(2), 177–195.

Fandel G. (1991) Theory of Production and Cost, Springer-Verlag, Berlin, Heidelberg.

Keeney R. L., Raiffa H. (1976) Decisions with Multiple Objectives Preferences and Value Tradeoffs. John Wiley & Sons, Inc.

Koopmans T.C. (1951) Analysis of Production as an Efficient Combination of Activities. In: Koopmans T.C., Alchian A, Dantzig G.B., Georgescu-Roegen N, Samuelson PA, Tucker AW (eds) Activity Analysis of Production and Allocation: Conference Proceedings. Wiley, New York, 33–97.

Pishchulov G, Richter K. (2016). Optimal Contract Design in the Joint Economic Lot Size Problem with Multi-Dimensional Asymmetric Information. European Journal of Operational Research (2016), 1–23.

Wen M. (1998). An Analytical Framework of Consumer-Producers, Economies of Specialization and Transaction Costs. In: Arrow K., Ng, Yew-Kwang, Xiaokai.Y. Increasing Returns and Economic Analysis. UK, Palgrave Macmillan.

Tombazos C. (2006). Inframarginal Contributions to Development Economics. Singapore. World Scientific Publishing Co. Pte. Ltd.

Yang X., Liu W.-M. (2009). Inframarginal Economics. Increasing Returns and Inframarginal Economics. Vol. 4. Singapore: World Scientific Publishing Co. Pte. Ltd. 904p.

Yu X., Chai Y., Liu Y., Sun H. (2014) Infra-Marginal Analysis Model for Provision Mode Selection for E-Commerce Services. Tsinghua Science and Technology, Volume 19, Number 2, April 2014, pp174-183.

Zhang Y. (2014). Climate Change and Green Growth: A Perspective of the Division of Labor. China & World Economy / 93–116, Vol. 22, No. 5, 2014.




DOI: https://doi.org/10.15826/recon.2018.4.2.011

Copyright (c) 2018 D. S. Petrenko

Сertificate of registration media Эл № ФС77-80764 от 23.04.2021
Online ISSN 2412-0731