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A method of analyzing the feasibility of government programs

Abstract

The article discusses the problems of implementation of strategic plans for development of industry, in particular, the State Program "Development of the industry and increase its competitiveness," emerged in the economy at the beginning of 2014 as a result of foreign policy events. Home of the problems - is a possible reduction in the size of government funding critical to the country's state program, which in non-realization of schedule may extend the technological backwardness of Russian industry to the world level. In order to evaluate the possible consequences of this situation for the economy, the article suggests a model tool that allows to evaluate these effects, both on the macro economy, and the sheer size of the public funding of the state program. In particular, modeling tools allowed us to determine the threshold level of underfunding, the excess of which will lead to the practical impossibility of the state program in the given parameters. Modeling tools based on two concepts - analysis "cost-benefit" analysis and influence, and is based on the unit of production functions. All calculations are made for the subroutine "Chemical industry" government program. Selecting this subroutine was based on the importance of the chemical complex as a key component of the process of economic development. The article describes in detail the results of the model calculations.

About the Authors

V. A. Bazhanov
Institute of Economics and Industrial Engineering SB RAS, Novosibirsk Novosibirsk State University, Novosibirsk
Russian Federation


V. N. Dvortsov
Novosibirsk State University, Novosibirsk «Center of Financial Technologies», Novosibirsk
Russian Federation


References

1. Titov S. Less than 20 billion the government is willing to grant credit to support the industry until. Vedemosti, 08.07.2014. URL: http://www.vedomosti.ru/finance/news/ 28683091/ promyshlennostostalas-bez-deneg#ixzz36sVtp400 (in Russ.)

2. Patton M. Q. How to Use Qualitative Methods in Evaluation. Sage Publications Inc., 1975, 176 p.

3. Dixit A., Stiglitz J. Monopolistic Competition and Optimum Product Diversity. American Economic Review, 1977, vol. 67, no. 3, p. 297–308.


Review

For citations:


Bazhanov V.A., Dvortsov V.N. A method of analyzing the feasibility of government programs. World of Economics and Management. 2014;14(4):34–48.

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ISSN 2542-0429 (Print)
ISSN 2658-5375 (Online)