ASSESSMENT OF MARKET EQUILIBRIUM OF BASIC DYNAMIC MODELS

Abstract

The main models used to assess the market equilibrium are analyzed. Refinements of the mechanism of interaction between supply and demand are proposed, which are necessary for practical forecasting in the stock market. Elements of differential calculus are used for forecasting. The solution of the differential equation shows that the movement of the market cannot be described by a single equation. If demand changes, then this will entail a change in supply, which balances the market. The full cycle of market fluctuations, by analogy with the cobweb pattern, is divided into 4 quarters of the π/2 period. An assessment is made of the stability of the market equilibrium for each period. To do this, on each π/2 period, we write down and solve the differential equation. On the basis of research, the dependence of the change in the amplitude of market fluctuations during one half-period and the equation of market fluctuations relative to the equilibrium point was obtained.