This paper presents an analytic procedure for the value added to different production levels with different policy options. The approach is stochastic and thus provides a framework for informed decision-making on productivity growth under uncertainty conditions. The model was applied to data collected from a firm and re-sults recommend that the firm should redevelop if in diversification and sy...

This paper examines two related models, which permit analytical investigation, to gain some insights into a relationship between endogenous growth and business cycle. Using two simple models which incorporate Fisher Black’s idea that a significant part of business cycle fluctuations is a consequence of an economy’s choice, we obtained a negative relationship between uncertainty and growth. Henc...

Focusing on U.S. data, we show the existence of a significant positive link between uncertainty and reallocation from private to government capital. This link is important because an increase in the aggregate share of government capital forecasts lower medium-term growth. We rationalize these novel empirical findings in a production economy in which the representative agent has an explicit fear...

For many real-life systems ranging from financial to populationrelated to medical, dynamics is described by a system of linear equations. For such systems, the growth rate λ can be determined as the largest eigenvalue of the corresponding matrix aij . In many practical situations, we only know the components of the matrix aij with interval (or fuzzy) uncertainty. In such situations, it is desir...