MODELING PROCESS OF ECONOMIC SECURITY FORMATION OF ENTERPRISES IN TERMS OF THEIR INNOVATION DEVELOPMENT

Abstract

The aim of the article was the finding of ways to improve the modeling system for the formation of economic security of enterprises in the context of their innovation development. In order to improve the diagnosis and forecasting of economic security of agricultural enterprises, this paper presents three commonly used models for the formation of binary models in the study of production technologies with several input quantities, which consist of several output quantities. The author created the production problems of minimizing costs, maximizing income and maximizing profits. Dual functions of cost, revenue or profit representing these optimization problems are defined in their common forms as a function of prices and / or quantity of resources. A set of theoretical regularities and their economic interpretation for each of the three dual target functions is described. The proposed optimized demand and supply functions obtained by applying the Shepard lemma, Samuelson-McFadden lemma and Hoteling lemma. Derivative input quantities are limited by output quantities in the case of the problem of cost minimization, and the resulting output quantities are limited by input data in the case of a problem of maximizing income. This study covers the theoretical foundations of a dual approach in the production economy. In the optimization problem, assumptions about exogenous and endogenous variables included in the estimation model are introduced. For each of three model entities, quantitative indicators of economic interest are also presented, such as price elasticity, elasticity of substituting incoming data and converting output data.