Distributed model of a self-developing market economy

Fairly rigorous mathematical laws are applied to construct a mathematical model of a self-developing market economy with movement of time-dependent capital in the technology space. The model is a system of nonlinear partial differential equations. We analyze the bifurcations of the spatially homogeneous solutions that describe the dynamics of macro-variables of the economic system. We also study some properties of the solutions of the partial differential equations that follow from diffusion of capital and consumer demand. © 2005 Springer Science+Business Media, Inc.