Positive dynamic systems with entropy operator: Application to labour market modelling

Nonlinear dynamic systems with positive solutions and the parametric problem of entropy maximization (entropy operator) are considered. The continuity, differentiability and boundedness of the entropy operator and the boundedness of the solutions of the dynamic system are derived using the global implicit function theorem. The technique of positive dynamic systems is applied to modelling of the labour market dynamics. The model is based on description of cohorts competition and of labour demand–supply interaction. A modification of the random search is used for parametric identification of the model. The model is tested on real data from the EU-countries. 2004 Elsevier B.V. All rights reserved.