The 10th International Conference on Fuzzy Systems and Data Mining (FSDM 2024)

Abstract: The country's production potential is the possibility of paying for the needs of the population and society as a whole socio-economic activity of the economic system, production of qualitative and competitive products, ensuring the development of production and demand, improving the structure of the economy. The production capacity of society - is the capacity of production of the maximum possible benefit through the full and efficient use of available resources. It is known that economic processes are naturally characterized by imprecise and uncertain relevant information. One of the main reasons is existence of an underground economy. However, in existing works, real-world imprecision and uncertainty of economic conditions are not taken into account. This paper focuses on defining the tax burden evaluation methodology that depends on production capacity, for a proportionally growing economy under uncertainty. A fuzzy integral equation is used to identify an integral tax burden taking into account the contribution of the underground economy for a certain financial (tax) year. It is also assumed that dynamics of gross domestic products are modeled by a fuzzy linear differential equation. An optimal value of tax burden is determined as a solution to the considered fuzzy integral equation.

Biography: Musayev Akif Farhad was born in Gorgan village of Fizuli region in 1947. He graduated from Mechanical-mathematical faculty of Azerbaijan State University named after SM Kirov in 1965-1971 and had been working as a laborant, junior scientific worker and main scientific worker in Laboratory of Economic-Mathematical models of Cybernetics Institute of Azerbaijan Academy of Sciences in 1967-1980. In the Moscow Central Institute of Mathematics and Economics, USSR Academy of Sciences, Doctor Philosophy on the theme “Improving the effectiveness of daily tasks in automobile transport by operative planning”, received PhD, in 1977. He had been working at the AOCI (Azerbaijan Oil and Chemistry Institute) as a senior lecturer and assistant professor of the Applied Mathematics Department in 1980-1984. In 1991, he established the Department of Economics and Management of the Machine Building Industry at the faculty of "Industry Economics" of the Azerbaijan State Oil Academy and he led there during 1991-1999 years. In 1992 he received “Doctor of Economic Sciences” on the theme “Economic problems of the development of oil machinery industry in the conditions of new economy” on the specialty of Organization of Planning and Management of economy of the National Economy and its branches (industry). He has been Professor since 1993 and correspondent member of ANAS in economics since 2001. He is the Head of Department of Mathematical Provision of Economic Research at the Institute of Economics of ANAS from 2016 till today.

He is the head of department “Banking and Finance” at Girne University of Cyprus, honor doctor of Caucasus University of Georgia and “Odlar Yurdu” University of Azerbaijan, Editor in-chief of “ASERC Journal of Socio-Economic Studies”, member of editorial board of “Scientific News”journal.

A.F. Musayev is the author of numerous scientific works, especially some crucial findings and new approaches that play important role for supporting effective economy policy and active tax policy. He has been supervisor too many PhDs in economics, not only in Azerbaijan but also in other countries such as Ethiopia, Turkey, Iran and ect.

Research Interests: econometric modelling, optimiztions, fuzzy theory, decision analysis, tax policy and tax burden, shadow economy