Model of money income diffusion in the European integration context

Abstract

A model of money income diffusion is constructed taking into account the processes of social comparison and the development of the income formation spatial structure. To implement such model, the analytical theory of continued fractions is used and the corresponding differential equation solution is found in the form of a formal functional continued fraction. The values of the approach fractions of a continuous fraction describing the dynamics of changes in the level of money income give an approximation of the real values with almost predetermined, arbitrarily high accuracy. This allowed us to qualitatively describe the general dynamics of the money income diffusion process.