Differential Models and Neutral Systems for Controlling the Wealth of Nations

The following sections are included:

• Acknowledgements

• Foreword

• Contents

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In a recent book, Gandolfo has argued persuasively that delay differential equations are more suitable than differential equations alone or difference equations alone for an adequate treatment of dynamic economic phenomena [30, pp. 545-549]. There are at least two ways that time delays emerge in the dynamics of economic variables: there is some time lag between the time economic decisions are made and the time the decisions bear fruit (see Kalecki [31, 32] and Chukwu [25, 33]). There is a second “hidden” way, the way of rational expectation (see Ray C. Fair [12]) Luigi Amoroso [34], and J. B. Taylor [36, Chapter 3]. In the second way, one assumes that expected future values of a variable are functions of the current and the past values of all relevant variables. Thus according to Fair “rational expectations hypothesis” can better be approximated by assuming that the expected values of economic models are functions of the current and past values of various economic variables. Indeed we assume that aggregated demand Z (Fig. 6) is the sum of investment I, consumption C, net export X, and government out lay G: (see Fig. 2) .

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The following sections are included:

• Function Space Controllability

• References

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The following sections are included:

• Introduction
  • Assumptions
  • Optimal Control of Linear Neutral Systems
  • Minimum “Investment” Control
  • Prevailing Assumptions

• Proof of Minimum-Effort Theorems

• Optimal Absolute Fuel Function

• References

The following sections are included:

• Introduction

• Existence, Uniqueness, and Continuity of Solutions of Neutral Systems

• Existence of Optimal Controls of Neutral Systems

• Optimal Control of Neutral Systems in Function Space

• References

The following sections are included:

• Introduction

• General Nonlinear Systems

• Nonlinear Interconnected Systems

• References

The following sections are included:

• Introduction

• Preliminaries

• Main Results

• References

The following sections are included:

• Introduction

• The Main Results

• References

The following sections are included:

• Introduction

• Basic Results

• Economic Model

• Employment

• Policy Implications of Damping Out Employment Oscillation

• References

The following sections are included:

• Design of an Econometric Meter or Econometric Simulator

• Salamon's Circuit

• Simulation of a Nonlinear Economic State of Gross Domestic Product and Interest Rate

• Delay Systems

• Tunnel Diode Circuit with Delay: Analogue, Econometric Meter with Delay

• Perspective

• References

The following sections are included:

• Appendix

• Index