TITLE:
Application of Markowitz Model to Mongolian Government Budget
AUTHORS:
Ch. Ankhbayar, B. Lkhagvajav, N. Tungalag, R. Enkhbat
KEYWORDS:
Markowitz Model
JOURNAL NAME:
iBusiness,
Vol.11 No.3,
September
19,
2019
ABSTRACT: We apply Markowitz portfolio theory to Mongolian
economy in order to define optimal budget structure. We assume that the
government revenue is a portfolio consisting of seven major taxes and non-tax
revenues. We minimize the variance of the portfolio under fixed return of the
government revenue. This optimization problem has been solved by the conditional
gradient method on MATLAB. Computational results based on Mongolian economic
data are provided.