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• W295863478 abstract "I. INTRODUCTION There are parallels between complex chemical processes and economic systems. Both systems share the characteristics of complexity, non-linearity, and an inability to write accurate mathematical models explaining their behaviors. Chemical engineers have addressed these characteristics in chemical reactors by developing a model called partial control (e.g., Kothare et al., 2000; Shinnar, et al., 2000; Tyreus, 1999A, 1999B; Mismar and Ismail, 1998; Arbel, et al., 1997; Ahmed, 1996; Arbel, et al., 1996; Guettler, et al., 1994; Jacobsen and Skogestad, 1994; Yu, 1993). This type of model has also been successfully employed by material science engineers (Nordmann and Cheng, 1997), computer sciences scholars (e.g., Pomeranz and Reddy, 1993, Aracil and Gordillo, 2000), and electrical engineers (e.g., Edirisooriya and Robinson, 1993). In a similar way, game theorists studying the delayed information model have used frameworks with noise-corrupted features. By using Monte Carlo simulation estimations and Kalman filter-type estimator, they show that pursuing such a strategy substantially improves the accuracy of the model (Shinar and Glizer, 1999, Shinnar, et al, 2000, Emirmahmutoglu, et al., 2008). This model allows engineers to monitor complex chemical reactions and change only number of key variables, in order to move the system to a different state or level. This property of being able to control for only a few variables out of a complex system is also common when one studies economic regimes. Due to the similarities between chemical and economic processes, it is worthwhile to examine a framework for applying partial control to economic systems. This paper is an effort to provide such a framework. Partial control methodology can also be adopted and applied in education. Green and Carl (2000) test a number of schools under a similar partial control system in various major cities to examine the important issues concerning their low performance. Jessell, Madura and Picou (1993), and Spencer, Akhigbe and Madura (1998) apply partial control theory to business acquisitions, focusing on the before-and-after impacts in market performance and policy controls. Weskamp (1988) investigates the relationship between credit contract and bankruptcy using the partial control mechanism in comparison to total control system. Ooghe and Peichl (2011) use a partial control environment to formalize the idea of fair and efficient taxation. Robert (1993) presents a different mathematic approach based on Markov Chain Monte-Carlo methods, toward partial control algorithms based on functional and mixing theories (see also Verhofen, 2005). By introducing a system, Tang, Choy and Wat (2000) apply a partial control system framework to office development decision-making in Hong Kong. They find that the system offers necessary certainty supports for the decision controls. Similarly, Kang, Choe and Park (1999) use a hybrid method combined with an inductive learning and neural networks in order to control and generate better operating manufacturing conditions. With an attempt to propose an optimal nonlinear effluent-charge system for pollution control, Lee and Kim (2000) compare their pollution control system with other conventional linear effluent-charge systems and discuss the economic implications of implementing such systems. Young, Parkinson and Lees (1996) conduct a statistical control modeling procedure for environmental studies. They provide three main methodological tools: uncertainty and sensitivity studies based on Monte Carlo simulation techniques; dominant mode analysis using a new method of combined linearization and model-order reduction; and data-based mechanistic modeling. Additionally, Pandey (2005) utilizes the Industrial Pollution Projection System database to predict pollution load and related abatement costs. The analysis juxtaposes the cost effectiveness of effluent charge versus regulation. …" @default.
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• W295863478 date "2012-06-22" @default.
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• W295863478 title "An Essay in Favor of Dynamic Partial Control of the Economy" @default.
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