2013/03/23 by Harris Georgiou, Georgiou, Harris V.
Economics, Econometrics and Finance · #Dynamical Systems (math.DS) #Economic theories and models #FOS: Economics and business #FOS: Mathematics #General Finance (q-fin.GN)
paper · pdf · doi:10.48550/arxiv.1303.5882
openalex publication_date 2013/03/23 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
In this paper, simple mathematical models from Control Theory are applied to three very important economic paradigms, namely (a) minimum wages in self-regulating markets, (b) market-versus-true values and currency rates, and (c) government spending and taxation levels. Analytical solutions are provided in all three paradigms and some useful conclusions are drawn in terms of variable analysis. This short study can be used as an example of how feedback models and stability analysis can be applied as a guideline of 'proofs' in the context of economic policies.