Inframarginal models of spatially allocated economic structures and the analysis of production processes

Volume 4, Issue 2
Pages: 72—29

D. S. Petrenko — Regional Development Center ‘Ekaterinburg’, Central Bank of the Russian Federation

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The article discusses designing of labor division networks. Designing of the economic structure of labor division constitutes the main part of inframaginal analysis. Inframaginal analysis normally uses predefined economic structures, which means that in certain cases some economic structures may be neglected. Such inaccuracies may be not important in the analysis of small enterprises but in the analysis of spatially allocated economic structures, some important aspects may be left unnoticed, which will lead to wrong decisions regarding labor allocation.
To make an enterprise competitive it is essential to understand what is the optimal economic organization and the form of labor division in the given region. If some economic structures are not taken into account in the analysis, the general equilibrium will be incorrect, which will negatively affect the decision-making.
If we use inframarginal models to analyze the production process, it will allow us to take a fresh perspective on the problem. All possible structures of the division of labor are designed by using production factors and goods to reduce the risk of errors in the process of decision-making, which will make the production process of the enterprise more efficient.

Keywords: inframarginal analysis, technology, division of labor, network effects, economic structures, regional economy

DOI:  https://doi.org/10.15826/recon.2018.4.2.011

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