Abstract
A useful method in intelligent engineering, called model reference control (MRC), is applied in an economic control problem. The authors review the main framework of MRC and Goodwin growth cycle (GGC) model between two countries and drive the employment rate to be approximate stable in a high level by controlling the workers′ share in the national income automatically. It is very helpful to constitute economic policies for a country or an economic union.
Highlights
The control problems in economy are very important for the countries or economic unions
The numerical results will show that MRC is an excellent tool for controlling some complex economic systems, such as Goodwin growth cycle GGC model between two countries, and, this may be valuable in constituting economic policies for a country or an economic union as Holt’s work 43 has done
To find the operator T ’s best approximate T1, the plant model is given by y k s T1 y k, ..., y k − n 1, x k, ..., x k − m 1 ; p1, 2.3 where T1 ·, p1 is the function implemented by neural network with three layers and p1 is the parameter vector containing all the network weights and threshold values
Summary
The control problems in economy are very important for the countries or economic unions. The aim of this paper is to expand the MRC to the field of economic control with the aid of neural network technique. The numerical results will show that MRC is an excellent tool for controlling some complex economic systems, such as Goodwin growth cycle GGC model between two countries, and, this may be valuable in constituting economic policies for a country or an economic union as Holt’s work 43 has done. This fully shows the efficiency and practicality of MRC with neural network structure in economic application.
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