Optimal and reference adaptive processes for the control of regional income disparities

Abstract

This paper reports on studies into the controllability of the regional income disparities arising from multi-regional economic growth. The necessary condition is that no significant band of regional income disparities should result at the end of the planning period. The regional disparities among nine regions in Japan are explored using the interregional input-output technique and regional production functions. Furthermore, some potentially interesting research probes into the controllability of regional income disparities using the reference adaptive control technique are discussed.