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

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.

Keywords

• computational algebra
• linear discrete dynamical systems
• linear feedback
• model matching
• macroeconomical dynamics