An analysis of gap of funds supply and demand of region a based on GM (1, 1) model

Abstract

In real world, the prevalence of “small sample and poor information” uncertainty system determines a very wide application of the Grey System theory, in the which GM (1, 1) model is the core forecasting model, and plays a very important role. In this paper, a GM (1,1) model is applied to analyze the funds gap between supply and demand in region A. Firstly, the model is used to predict the amount of demand and supply of funds needed in region A during the “Thirteenth five” Plan. Then, corresponding countermeasures will be proposed to bridge the gap, which will be helpful to alleviate the constraints on economic development in this region caused by the shortage of funds. This will provide a new reference of funds-budget for similar underdeveloped and data deficient regions.