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Dynamic reforming of a quasi pay-as-you-go social security system within a discrete stochastic multidimensional framework using optimal control methods

Athanasios A. Pantelous, Alexandros A. Zimbidis (2008)

Applicationes Mathematicae

In many western economies, the phenomenon of ageing population implies that the large Pay-As-You-Go (PAYGO) social security system will run into several severe financial difficulties. In that direction, this paper constructs a discrete-time stochastic model for a quasi PAYGO social security system to allow the potential accumulation of a special (contingency) fund, which can oscillate so as to absorb fluctuations in the various system parameters involved. The basic difference equation is analytically...

Dynamics of social networks: A deterministic approach

David Pearson, Mark McCartney (2002)

International Journal of Applied Mathematics and Computer Science

Our aim is to model the dynamics of social networks, which comprises the problem of how people get to know each other, like each other, detest each other, etc. Most existing models are stochastic in nature and, obviously, based on random events. Our approach is deterministic and based on ordinary differential equations. This should not be seen as a challenge to stochastic models, but rather as a complement.

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