Controlling noisy, stable and chaotic, economics

Ruedi Stoop (), Albert Kern () and Clemens Wagner ()
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Ruedi Stoop: Institute of Neuroinformatics, University/ETH Zurich and Univ. of Applied Technical Sciences of Northwestern Switzerland, Olten
Albert Kern: Institute of Neuroinformatics, University/ETH Zurich
Clemens Wagner: Department of Pharmacology, University of Bern

Modeling, Computing, and Mastering Complexity 2003 from Society for Computational Economics

Abstract: We investigate a simple nonlinear model of economics to which strong multiplicative noise is added, and find two distinct generic control regimes. In the regime of noisy behavior, the application of the control is able to reduce noise only if the underlying periodicity is correctly taken into account. In the chaotic regime, a shift of the optimal control point relative to the noise-free control point is observed, scaling linearly with the noise strength. The best control results emerge for unstable orbits of period-one, which suggests, that economic systems should preferably be controlled on these states.

Keywords: control; simple limiter; noise; chaos; nonlinear system (search for similar items in EconPapers)
JEL-codes: D50 L10 O30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp
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Persistent link: https://EconPapers.repec.org/RePEc:sce:cplx03:18

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