Modeling of the Economic Development of a Region

The economic development of a region depends on a number of factors which influence it mainly bases in a macro-economic aspect. Each region has its specific characteristics, thus area-surveyed indicators may not have sufficient predicative potential. In this chapter the authors design two new indicators (Index of Citizens’ Financial Provision and Risk of Regional Economic Development) which enable them to evaluate the financial provision of citizens and the economic risk of a region in more detail. Consequently the authors can, through the course of designing these indicators, determine the rate of their influence on a region or at least predict their development. In order to create and model these indicators the authors used tools from the Microsoft Excel program. The methodology described can be widely utilized, as partial indicators can be substituted and, therefore, it is possible to evaluate other strategic factors of the region under consideration. Indicator Risk of Regional Economic Development was designed with the help of fuzzy sets. The chapter includes two case studies, which are based on official data provided by the Czech Statistical Office. The purpose was to illustrate the construction of indicators, their predicative value and modeling potential.