On the Use of Production Function for Simulation Functioning of Regional Economy

Abstract

The article presents the results of the construction of the neoclassical CES and the VES production function, describing the functions-conditioning system of regional economic Khanty-Mansiysk Autonomous Area – Yugra. Production functions are an important element of a sufficiently large number of regional development models and make it possible not only in the explicit functional form to describe the behavior of economic region, but also to carry out a quantitative analysis of its effectiveness, is-using collateral settlement and analytical apparatus. Neoclassical production functions such as CES-function is most often used to describe the functioning of various economic systems, including the regional economic system. The use of the neoclassical production functions such as VES - function to solve this problem meets is extremely rare. The production of both types of functions have been presented in the form of a classic two-factor, but given the current trends in this area as the cost factors considered economic system used by the economic indicators that are different from the canonical-ray. To construct production functions used statistical-parameter data describing the socio-economic condition of the Khanty-Mansiysk Autonomous Area – Yugra, published in the public press-minute.