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Feedback Control Techniques for a Discrete Dynamic Macroeconomic Model with Extra Taxation: An Algebraic Algorithmic Approach

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  • Stelios Kotsios

    (Unit of Mathematics and Computer Science, Department of Economics, National and Kapodistrian University of Athens, Sofokleous 1, 10559 Athens, Greece)

Abstract

In this paper, a model matching feedback law design technique is applied to a macroeconomical model. We calculate, using computational algebra methodology, which paths of government expenditure and extra taxation will lead the system to a desired dynamic behavior. The solution is based on algebraic methods and the development, in computer algebra software, of appropriate symbolic algorithms that produce a class of feedback laws as solutions. A method for solving a linear algebraic system of polynomials equations is provided, as well as its application to the feedback law design.

Suggested Citation

  • Stelios Kotsios, 2023. "Feedback Control Techniques for a Discrete Dynamic Macroeconomic Model with Extra Taxation: An Algebraic Algorithmic Approach," Mathematics, MDPI, vol. 11(19), pages 1-12, October.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:19:p:4213-:d:1256243
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    1. Hommes, Cars H., 1995. "A reconsideration of Hicks' non-linear trade cycle model," Structural Change and Economic Dynamics, Elsevier, vol. 6(4), pages 435-459, December.
    2. Ilias Kostarakos & Stelios Kotsios, 2018. "Fiscal Policy Design in Greece in the Aftermath of the Crisis: An Algorithmic Approach," Computational Economics, Springer;Society for Computational Economics, vol. 51(4), pages 893-911, April.
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