Mathematical Programming of Long-Term Plans in Hungary

During the course of the past two or three years, a beginning has been made in Hungary in the use of mathematical methods and econometric models for long-term planning. The author has, together with economists, mathematicians, and engineers, conducted several investigations of this kind. First, a linear programming problem was solved for the cotton industry, to determine this sector’s five-year investment plan. Next, non-linear programming was used in computing data to serve as a foundation for the development of the Hungarian synthetic-fibre industry. Similar research was also applied to the bauxite and aluminium industry. Finally, a mathematical model was worked out for programming a long-term plan for the national economy as a whole, in which central and sectoral programming are linked to one another. The preparation of a numerical computing project based on this macro-economic model is now under way.