IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04039452.html
   My bibliography  Save this paper

Modelling and Optimal Control of MIMO System - France Macroeconomic Model Case

Author

Listed:
  • Zilong Zhao

    (GIPSA-COPERNIC - GIPSA - COntrol, PErception, Robots, navigation and Intelligent Computing - GIPSA-PSD - GIPSA Pôle Sciences des Données - GIPSA-lab - Grenoble Images Parole Signal Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Bogdan Robu

    (GIPSA-MODUS - GIPSA - Modelling and Optimal Decision for Uncertain Systems - GIPSA-PAD - GIPSA Pôle Automatique et Diagnostic - GIPSA-lab - Grenoble Images Parole Signal Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Ioan Doré Landau

    (GIPSA-MODUS - GIPSA - Modelling and Optimal Decision for Uncertain Systems - GIPSA-PAD - GIPSA Pôle Automatique et Diagnostic - GIPSA-lab - Grenoble Images Parole Signal Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Luc Dugard

    (GIPSA-SAFE - GIPSA - Safe, Controlled and Monitored Systems - GIPSA-PAD - GIPSA Pôle Automatique et Diagnostic - GIPSA-lab - Grenoble Images Parole Signal Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Nicolas Marchand

    (GIPSA-COPERNIC - GIPSA - COntrol, PErception, Robots, navigation and Intelligent Computing - GIPSA-PSD - GIPSA Pôle Sciences des Données - GIPSA-lab - Grenoble Images Parole Signal Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Louis Job

    (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes)

Abstract

In this paper, we focus on the French Macroeconomic model. We use real economic data, available as time series,starting from 1980s and openly provided by the INSEE, the national statistics bureau of France. Variables such as Gross Domestic Production, Exportation, Importation, Household Consumption, Gross Fixed Capital Formation and Public expenditure are included in the analysis. Our objective is to maintain a constant economic growth rate according to the available resources. We implement an optimal control policy via Linear-Quadratic Regulator (LQR) to achieve that. Since we aim to maintain a constant growth rate, the control system is modified for thispurpose. We prove the efficiency with three experiments based on real data, and we test the method robustness with respect to: (1) variation of LQR parameters, (2) realistic constraints on inputs, and (3) perturbations on outputs. Results show that our designed control system can guide the output to the desired growth rate. Varying parameters of LQR can change the convergence speed of the system. Constraints on specific inputs can delay the system convergence and stimulate other inputs to compensate for the constraints. Perturbations on outputs experiment show that our control law can help the system to recover to the original statespace.

Suggested Citation

  • Zilong Zhao & Bogdan Robu & Ioan Doré Landau & Luc Dugard & Nicolas Marchand & Louis Job, 2023. "Modelling and Optimal Control of MIMO System - France Macroeconomic Model Case," Post-Print hal-04039452, HAL.
    • Handle: RePEc:hal:journl:hal-04039452
    DOI: 10.23919/ECC57647.2023.10178184
    Note: View the original document on HAL open archive server: https://hal.science/hal-04039452
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04039452/document
    Download Restriction: no
    File URL: https://libkey.io/10.23919/ECC57647.2023.10178184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giovanni Baiocchi & Walter Distaso, 2003. "GRETL: Econometric software for the GNU generation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 105-110.
    2. Blanchard, Olivier J, 1983. "The Production and Inventory Behavior of the American Automobile Industry," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 365-400, June.
    3. Cheung, Yin-Wong & Lai, Kon S, 1995. "Lag Order and Critical Values of the Augmented Dickey-Fuller Test," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 277-280, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark J Holmes & Jesús Otero & Theodore Panagiotidis, 2018. "Climbing the property ladder: An analysis of market integration in London property prices," Urban Studies, Urban Studies Journal Limited, vol. 55(12), pages 2660-2681, September.
    2. Pastore, Erica & Alfieri, Arianna & Zotteri, Giulio, 2019. "An empirical investigation on the antecedents of the bullwhip effect: Evidence from the spare parts industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 121-133.
    3. Guo Chen & Amy K Glasmeier & Min Zhang & Yang Shao, 2016. "Urbanization and Income Inequality in Post-Reform China: A Causal Analysis Based on Time Series Data," PLOS ONE, Public Library of Science, vol. 11(7), pages 1-16, July.
    4. Maria Lourdes Ordoñez Olivo & Zoltán Lakner, 2023. "Shaping the Knowledge Base of Bioeconomy Sectors Development in Latin American and Caribbean Countries: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    5. Keen Meng Choy & Hwee Kwan Chow, 2004. "Forecasting the Global Electronics Cycle with Leading Indicators: A VAR Approach," Econometric Society 2004 Australasian Meetings 223, Econometric Society.
    6. Lawrence J. Christiano & Martin S. Eichenbaum, 1985. "A continuous time, general equilibrium, inventory-sales model," Working Papers 361, Federal Reserve Bank of Minneapolis.
    7. Wei, Liqun & Zhang, Jianxiong & Zhu, Guowei, 2021. "Incentive of retailer information sharing on manufacturer volume flexibility choice," Omega, Elsevier, vol. 100(C).
    8. Maccini, Louis J. & Moore, Bartholomew & Schaller, Huntley, 2015. "Inventory behavior with permanent sales shocks," Journal of Economic Dynamics and Control, Elsevier, vol. 53(C), pages 290-313.
    9. Francis Ahking, 2003. "Efficient unit root tests of real exchange rates in the post-Bretton Woods era," Economics Bulletin, AccessEcon, vol. 6(7), pages 1-12.
    10. Nalewaik, Jeremy & Pinto, Eugénio, 2015. "The response of capital goods shipments to demand over the business cycle," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 62-80.
    11. Helge Berger & Frank Westermann, 2001. "Factor price equalization? The cointegration approach revisited," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(3), pages 525-536, September.
    12. Pawel Milobedzki, 2010. "The Term Structure of the Polish Interbank Rates. A Note on the Symmetry of their Reversion to the Mean," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 10, pages 81-95.
    13. Gyula Dörgő & Viktor Sebestyén & János Abonyi, 2018. "Evaluating the Interconnectedness of the Sustainable Development Goals Based on the Causality Analysis of Sustainability Indicators," Sustainability, MDPI, vol. 10(10), pages 1-26, October.
    14. Kenneth D. West & David W. Wilcox, 1993. "Some evidence on finite sample behavior of an instrumental variables estimator of the linear quadratic inventory model," Finance and Economics Discussion Series 93-29, Board of Governors of the Federal Reserve System (U.S.).
    15. Rogelio Varela & Lázaro Cruz, 2016. "Inversión extranjera directa y tasa de interés en México: un análisis dinámico," Nóesis. Revista de Ciencias Sociales y Humanidades, Nóesis. Revista de Ciencias Sociales y Humanidades, vol. 25, pages 127-150, 50.
    16. Karp, Larry & Perloff, Jeffrey M, 1988. "Dynamic Oligopoly: Estimation and Tests of Market Structure," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7fk1119n, Department of Agricultural & Resource Economics, UC Berkeley.
    17. Neil R. Ericsson & James G. MacKinnon, 2002. "Distributions of error correction tests for cointegration," Econometrics Journal, Royal Economic Society, vol. 5(2), pages 285-318, June.
    18. Jonathan McCarthy & Egon Zakrajšek, 2000. "Microeconomic inventory adjustment: evidence from U.S. firm-level data," Staff Reports 101, Federal Reserve Bank of New York.
    19. Robert E. Carpenter & Steven M. Fazzari & Bruce C. Petersen, 1994. "Inventory (Dis)Investment, Internal Finance Fluctuations, and the Business Cycle," Macroeconomics 9401001, University Library of Munich, Germany.
    20. Yin‐Wong Cheung & XingWang Qian, 2010. "Capital Flight: China's Experience," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 227-247, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-04039452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.