Classification of economic and mathematical models of investment projects

the relevance of this study is associated with the need to create a methodology for economic and mathematical modeling of investment projects. The existing methodological approaches and some regulatory documents on building models have not yet been systematized and do not rely on a reliable theoretical foundation. In practical activities to create investment project models, there are already established generally accepted practices, an understanding has been reached that the best quality of the model is achieved when using the three-report method. However, the lack of a unified methodology for modeling leads to distortions in both the calculations themselves and in the interpretation of the results obtained. Also, at present, there is no established understanding of the limits of applicability of certain models. In this study, we are interested in economic and mathematical models of investment projects. Developing a classification of such models will allow us to create a methodology for their construction and application in the future, which will significantly improve the quality of investment decisions. In the study, we selected the following classification features of models: by modeling object, by data structure, by scale of the modeled object, by completeness of accounting of material and cash flows, by availability of the calculation algorithm for editing, by the possibility of reuse. It is concluded that deterministic models of investment projects, executed in the MS Excel spreadsheet processor based on open calculation algorithms using universal programs (templates) are the most common and popular type of economic and mathematical model. The author also draws attention to the fact that probabilistic models based on the Monte Carlo method are a very promising subclass of the model due to their wide possibilities for risk analysis.

economic and mathematical models, investment project, classification of models, financial models