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<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>A model for assessing the development of the economy of the "future cities" based on the regression data parameter Constructive Coste Model</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>O O Komarevtseva</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Department of Management and Public Administration, Russian Academy of National Economy and Public Administration</institution>
          ,
          <addr-line>82 Vernadsky avenue, Moscow, Russian Federation</addr-line>
        </aff>
      </contrib-group>
      <fpage>373</fpage>
      <lpage>380</lpage>
      <abstract>
        <p>The purpose of the scientific article is the formation of a model for assessing the development of the economy of the "future cities". The model tool is the regression data parameter Constructive Coste Model. The author suggests an aggregated model for assessing the development of the economy of a municipal formation. In the scientific article, the methods of situational modeling, imitation modeling, approximation, grouping of specific elements of a structural object, algorithmization of functional processes. The emphasis of the article is on the methodological apparatus of the subjective author's opinion. The methodological apparatus takes into account external changes in the economy of the city. Methodological approaches include: entropy of scientific knowledge, aberration, ap-proximation, robustness. In the course of the study, the following conclusions were obtained: the municipal economy is in the process of transformation; The aggregated model is an effective tool for assessing the development of the economy of the "future cities"; the accuracy of the model for assessing the development of the economy of the "future cities" has been confirmed criterial.</p>
      </abstract>
      <kwd-group>
        <kwd>future cities</kwd>
        <kwd>Smart City concept</kwd>
        <kwd>changes</kwd>
        <kwd>aggregation</kwd>
        <kwd>model</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>
        The digital transformation of the Russian economy helps to change the national development
priorities. Technological society implies fundamental changes in economic systems. The amendments
concern municipalities. Municipalities are limited by financial resources and authority to transform the
paradigm of economic development. The highlighted circumstance acquires a negative evaluation. It
shows the lability and robustness of change. The economy of municipalities can’t predict
development. The presence of problems of municipalities leads to ensuring the current needs of the
population and not the formation of a Smart environment. Dedicated circumstance negatively affects
the implementation of ideas for building the economy of the "future cities" [
        <xref ref-type="bibr" rid="ref18">18</xref>
        ], [
        <xref ref-type="bibr" rid="ref21">21</xref>
        ]. The theoretical
basis of the scientific article is manifested in the approaches of foreign authors. The digitalization of
the economy of the "future cities" is seen as a system of interrelationships between stable
technological institutions and the modeling of a new theory of economic systems [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ], [
        <xref ref-type="bibr" rid="ref10">10</xref>
        ], [
        <xref ref-type="bibr" rid="ref13">13</xref>
        ].
Theoretical compilation of new laws and concepts of forming the economy of the "future cities" is
traced in the studies [
        <xref ref-type="bibr" rid="ref7">7</xref>
        ]. The creation of a methodological apparatus for the formation of the economy
of the "future cities" is connected with practical measures for the transformation of city priorities [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ],
[
        <xref ref-type="bibr" rid="ref12">12</xref>
        ]. This aspect is occupied by foreign scientists with non-standard ideological approaches to the
question of forming the economy of the "future cities" within specific territorial formations. Particular
attention should be paid to the tools of aggregation and proto-typing. To achieve this goal, you must
perform the following tasks:
– to offer a toolkit of the aggregated model for assessing the development of the economy of the
"future cities";
– to allocate a criterial range of research of the regression data model of the Constructive Coste
      </p>
      <p>Model (COCOMO).</p>
    </sec>
    <sec id="sec-2">
      <title>2. Methodology</title>
      <p>
        The study of the theoretical and methodological tools for the readiness of the development of the
"future cities" can traced in the works of foreign and Russian scientists. Many studies are based on
determining the readiness of cities to implement Smart City technologies through the construction of a
statistical model. The key models of these studies are: the regression statistical model [
        <xref ref-type="bibr" rid="ref19">19</xref>
        ], the
statistical test model [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ], the statistical model of the robustness of the results obtained [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ], the
statistical model of the transition matrix [
        <xref ref-type="bibr" rid="ref15">15</xref>
        ], and the estimation model for questionable results [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ]. In
an analysis of a large amount of da-ta, automation of the proposed indicators (indicators) of the
evaluation is re-quired. For this, the simulation tools are used. Simulation data modeling is one of the
convenient and practical tools for assessing the development of the economy of the "future cities"
[
        <xref ref-type="bibr" rid="ref11">11</xref>
        ]. The simulation of the economic development of the "future cities" is connected with the concept
of Smart City. The following models are of interest: the agent model [
        <xref ref-type="bibr" rid="ref9">9</xref>
        ], the system dynamics model
[
        <xref ref-type="bibr" rid="ref8">8</xref>
        ], the determination model [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ], the discrete-event model [
        <xref ref-type="bibr" rid="ref20">20</xref>
        ]. In this toolkit there is no single model
for assessing the development of the economies of the "future cities". It does not take into account the
importance of developing the economies of the "future cities" in accordance with the concept of Smart
City. International models and ratings of the economy readiness study of the "future cities" with the
concept of Smart City are at the testing stage and are used to solve specific practical is-sues. To solve
this problem, the author suggests applying the Constructive Coste Model (COCOMO) regression
parameter. This aspect confirms the relevance of the topic and justifies the novelty of the research.
      </p>
      <p>The aggregated model for assessing the development of the economy of the "future cities" is based
on the aggregate regression data parameter Constructive Coste Model (COCOMO). The first model
was used to estimate the cost of software development. Subsequently, the model was further
developed taking in-to account the addition of indicators of the laboriousness of the process of
creating a software product. The application of the principles of the Constructive Coste Model (COCOMO)
is based on the adoption of an algorithmic methodology for determining the final result of the
development of the economy of the "future cities". Criteria ranges and applied formulas for estimating
the indicators of the aggregated model are adapted to the conditions of the urban economy. Let us
consider an aggregated model for assessing the development of the economy of the "future cities".</p>
      <p>The aggregated economic model evaluation "future cities" is based:</p>
      <p>Model 1. "Basic" – "Evaluation of the process of economic management". This model includes: the
indicator of renewal of the city infrastructure, the indicator of the standard of living of the population,
the indicator of budgetary return, the indicator of the level of municipal debt, the indicator of
investment activity. Grouped indicators of changes in Model 1. "Basic" are calculated by the
following formulas (1):
(1)
OMI
</p>
      <p>O  O
i
o
</p>
      <p>O
t ,
where I</p>
      <p>OMI
replacement of objects of innovative infrastructure for the current year, Oi1 is the volume of works
O  O O</p>
      <p>i  1 o  1 t  1
is the indicator of renewal of municipal infrastructure, Oi is the volume of works on
on replacement of objects of innovative infrastructure in the base year, Oo is the volume of works for
the replacement of urban infrastructure facilities for the current year, Oo1 is the volume of works for
the replacement of urban infrastructure facilities for the base year, Ot is the necessary amount of work
on the replacement of urban infrastructure in the current years, Ot 1 is the necessary amount of work
on the replacement of urban infrastructure in the base years;
– the indicator of the standard of living of the population:</p>
      <p>I j  Z j  1  T( Zj j 1 T j()Pj (P1jKKjj) 1)(S(jSjC j1) C j  1) , (2)
where I j is the indicator of the standard of living of the population, Z j is the average wage of the
able-bodied population in the current year, Z j 1 is the average wage of the able-bodied population in
the base year, Tj is the number of able-bodied population for the current year, T j 1 is the number of
able-bodied population for the base year, Pj is the average pension for the current year, P j 1 is the
average pension for the base year, K j is the number of pensioners living in the city in the current year,
K j 1 is the number of pensioners living in the city in the base year, S j is the average scholarship of
students of universities and colleges in current years, S j 1 is the average scholarship of students of
universities and colleges in base years, C j is the number of students at universities and colleges in the
current year, C j 1 is the number of students at universities and colleges in base year;
– the indicator of budgetary return:</p>
      <p>Ib </p>
      <p>P
b
</p>
      <p>Rb ,</p>
      <p>Pb  1 Rb  1
where Ib is the indicator of budgetary return, Pb is incomes of the city budget in the current year,
Pb1 is incomes of the city budget in the base year, Rb is expenditures of the city budget in the
current year, Rb1 is expenditures of the city budget in the base year;
– the indicator of the level of municipal debt:</p>
      <p>M d  1
where Id is the indicator of the level of municipal debt, M d is the level of municipal debt in the
current year, M d 1 is level of municipal debt in the base year;
– the indicator of investment activity:</p>
      <p>Id </p>
      <p>M d ,
Ii </p>
      <p> ki ,</p>
      <p>Ik
Ik  1</p>
      <p>I
ki  Pr , (6)
r
where Ii is the indicator of investment activity, Ik is the investment in the fixed capital of the city in
the current year, Ik 1 is the investment in the fixed capital of the city in the base year, ki is
coefficient of investment assistance, Ir is the number of investment projects realized for the year, Pr
is the number of investment appeals placed for the year.
(3)
(4)
(5)</p>
      <p>Model 2. "Built-in" - "State of the municipal economy". The model assesses the status indicators:
the indicator of innovative production of the municipal formation, the indicator of investment
saturation of the municipal formation, the indicator of communication and information availability, the
indicator of financial independence, the indicator of the development of the consumer market.
Grouped indicators of changes in Model 2. "Built-in" are calculated by the following formulas (7):
– the indicator of innovative production of the municipal formation:</p>
      <p>V  V
I  i v , (7)</p>
      <p>V
n
where I p is the indicator of innovative production of the municipal formation, Vi is the volume
p
shipped goods of innovative production, Vv is the volume of shipped goods of the most important
types of industrial products, Vn is the total volume of goods shipped works performed and services
provided by city enterprises;</p>
      <p>– the indicator of investment saturation of the municipal formation:
where Ii is the indicator of investment saturation of the municipal formation, I n is the volume of
investments in fixed assets due to all sources of financing (the current period), I p is the volume of
investments in fixed assets due to all sources of financing (the planning period);
– the indicator of communication and information availability:</p>
      <p>W  W
I  i c ,
k 100 %
(9)
where I k is the indicator of communication and information availability, Wi is the indicator of the
network coverage of the Internet territory of the city, Wc is the indicator of the capacity of
communication in the city;
– the indicator of the development of the consumer market:</p>
      <p>I 
i</p>
      <p>I
I
n ,
p
I 
r</p>
      <p>O
t ,
where I f is the indicator of financial independence, Pf is the profit of large and medium enterprises
of the city, U f is loss of large and medium enterprises of the city, Db is incomes of the city budget,
Rb is expenses of the city budget.</p>
      <p>R
m
where Ir is the indicator of the development of the consumer market, Ot is the retail trade turnover in
city economy, Rm is the gross territorial product;
– the indicator of financial independence:</p>
      <p>I
f
</p>
      <p>P</p>
      <p>f
U
f
 D
 R
b
b</p>
      <p>Model 3. "Detailed" - "Smart-design technologies". This model is based on the assessment of
indicators: Smart Energy, Smart Government, Smart Buildings, Smart Infrastructure, Smart Creative.
The availability indicators are expressed in terms of the parameter values: 0 – the condition is not
observed (the low level), 0.5 – the condition is met partially (the sufficient level), 1.00 – the condition
is met completely (the high level).</p>
      <p>"
c
i
s
a
B
"
.
1
l
e
d
o
M
"
n
i
t
l
i
u
B
"
.
2
l
e
d
o
M
"
d
e
l
i
a
t
e
D
"
.
3
l
e
d
o
M</p>
      <p>a s The indicator of renewal of municipal infrastructure
bs The indicator of the standard of living of the population</p>
      <p>cs The indicator of budgetary return
d s The indicator of the level of municipal debt</p>
      <p>es The indicator of investment activity
a n The indicator of innovative production of the municipal
bn The indicator of investment saturation of the municipal
formation
formation
cn The indicator of communication and information</p>
      <p>availability
d n The indicator of the development of the consumer market
en The indicator of financial independence</p>
      <p>ao Smart Energy
b0 Smart Government</p>
      <p>co Smart Buildings
d o Smart Infrastructure</p>
      <p>eo Smart Creative</p>
      <p>The presented indicators reflect the essence of the development of the economy of the "future
cities". The generalized values of the indicators reflect the criterial ranges of the economy of the
"future cities".</p>
    </sec>
    <sec id="sec-3">
      <title>3. Result</title>
      <p>Criteria levels of the estimated values of economic development of the "future cities" are formed on
the basis of a simple regression formula with parameters. Criteria levels transformed under the
conditions for calculating the maximum economic development ranges of the "future cities" in
accordance with the Smart City concept:
b
a (a  b  c  d  e ) d
Model1  d s s s s s , (12)
c  d
d d
where Model1 is maximum model range Model 1. "Basic", as is the indicator of renewal of city
infrastructure, bs is the indicator of the standard of living of the population, cs is the indicator of
budgetary return, ds is the indicator of the level of municipal debt, es is the indicator of investment
activity, ad , bd , cd , dd , ed is coefficients for calculating the levels of the Model.</p>
      <p>a (a  b  c  d  e )
Model2  d n n n n n , (13)
b  c  d</p>
      <p>d d d
where Model2 is maximum model range Model 2. "Built-in", an is the indicator of innovative
production of the municipal formation, bn is the indicator of investment saturation of the municipal
formation, cn is the indicator of communication and information availability, dn is the indicator of
financial independence, en is the indicator of the development of the consumer market,
ad , bd , cd , dd , ed is coefficients for calculating the levels of the Model.</p>
      <p>(a  b  c  d  e )
Model3  a  d o o o o o , (14)
d d b  c
d d
where Model3 is maximum model range Model 3. "Detailed", ao is the indicator "Smart Energy", bo
is the indicator "Smart Government", co is the indicator "Smart Buildings", do is the indicator
"Smart Infrastructure", eo is the indicator "Smart Creative", ad , bd , cd , dd , ed is coefficients for
calculating the levels of the Model.</p>
      <p>The coefficients for calculating the levels of the Model are presented in table 1.</p>
      <p>Formulas 11-13 allow to set the maximal values of Model. The existing gaps be-tween the criteria
form the economic development ranges of the "future cities". The final indicators of the level of
economic development of the "future cities" are de-termined on the basis of the average level of the
aggregated model (table 2).</p>
      <p>As part of the identification, the economy of the "future cities" will evolve according to the concept
of Smart City. Indicators for the development of the "future cities" economy are the intermediate
model level. The intermediate model level is calculated on the basis of parametric coefficients. To
calculate the coefficients COCOMO II - Constructive Cost Model calculator: ai  3,2;bi  1,05 ;
R( f )  3  bi .Calculated by the ranges, the parameters for assessing the development of the economy
of future cities vary within the limits of:
- the "low level" - the indicator parameter is in the range of 0.35-6.20;
- the "sufficient level" - the indicator parameter is in the range of values 6.21-9.52;
- the "high level" - the indicator parameter is in the range of values exceeding 9.50.</p>
      <p>The presented model has various applications. Industry is one of the areas of use of the
Constructive Cost Model. Firstly, the Constructive Cost Model simulates industrial processes. The
proposed algorithm must be adapted to industrial characteristics. The basis of the Constructive Cost
Model simulation will be the result of determining the readiness of the industrial sector to transition to
Smart City technologies. At the enterprise level, research can be local. Municipal research reflects the
industrial properties of the urban environment. Secondly, the Constructive Cost Model can be the
starting point for the formation of the “smart” industry of the municipal economy. The “Smart”
industry provides an analytical platform that determines: information flow, product application areas,
support for strategic decisions, tactical management, thematic reality. The smart industry is based on
Industry 4.0. The Industry 4.0 is based on digital productions. The production data is the backbone of
the economy with Smart City technology.</p>
    </sec>
    <sec id="sec-4">
      <title>4. Conclusion</title>
      <p>The model for assessing the development of the economy of the "future cities" based on the regression
parameter data of the Constructive Coste Model is formed by the author of the scientific article. This
model is necessary to determine the level of economic development of the "future cities". The basics
of this model correspond to the principles of the Constructive Cost Model. The instrument of the
model for assessing the development of the economy of "future cities" is the regression of the data
parameter. The model for assessing the development of the economy of the "future cities" includes the
following blocks: basic, in-built, detailed. Each block (Model) has a group of indicators. Indicators
Model should be evaluated. Criteria levels are calculated on the basis of maximum range formulas in
Model 1, Model 2, Model 3. The final indicator is the average level of the aggregated model. Using
the regression data model Constructive Coste Model is necessary to deter-mine the readiness of cities
to develop in accordance with the Smart City concept. The principle of universality allows us to adapt
the model for assessing the development of the economy of the "future cities" to changes in the
external environment. This condition involves the addition and adjustment of regression parameter
indicators data of Constructive Coste Model.</p>
    </sec>
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