Lucian Liviu ALBU

Abstract

The study represents an attempt to build a generalized sustainability function. After that, a model was developed in order to integrate the sustainability function within the general economic growth context. The author conceived two partial models (their parameters are being estimated on the basis of statistical data for the period 1993-2000) destined to simulate the following correlations: investment rate-growth rate and investment rate-investment efficiency. The main hypotheses on which the models are based are relatively simple, being intensively used in standard macroeconomic studies. The two partial models were combined in order to study the sustainability behavior on the real side of economy and the conclusion that the dynamics of the sustainability function, despite the imposed simplifying hypotheses, demonstrated a vast complexity was reached. Considering a general model in a reduced form, some plausible intervals from the economic viewpoint were set up.

Key words: sustainability function, model, simulation
JEL Classification: H68, C51, C15