MAKING OF DYNAMIC MATHEMATICAL MODEL IN THE ECONOMIC PROCESSES ANALYSIS

The paper outlines the quantitative method in the analysis of interdependences and correlation of magnitudes in economy, by application of dynamic mathematical model. Making of such a model applies the first-class differential equation which will be followed
through the final differences method.The application of this method enables the formation of the linear equation system which can be shown in a matrix form. This is the starting form of dynamic mathematical model. Development of computer technology enables increasingly broader application of mathematical methods and models in the analysis of economy. This is especially important
in the analysis of complex and dynamic relations of interdependences and functional correlation of sizes in the economic system. In economic system, such analysis initiates the optimum flows circulation which is indispensable for well-proportioned development programming. The author shows the quantitative analysis of relations among government revenues and gross domestic product of the Republic of Croatia by mathematical methods and models.
Its application enables the establishment of optimum solutions. The achieved solutions ensure permanent equilibrium and stability of economic system, and contribute to faster economic development.