A note on control theory and attaining equilibrium

In: Naval research logistics: an international journal, Volume 22, Issue 2, p. 411-414

Abstract

AbstractMost researchers have not recognized that the main problem of an economic system is the excessive time it requires to reach equilibrium (and consequent inadequate control). An extension of control theory is applied to the Competitive Equilibrium Model. The calculation shows, in contrast to previous results, full employment, if attained, may be maintained for nonzero periods. However, ill condition and other factors cause a very slow approach to optimum. Consequently, constant social and other changes keep a complex economy far from optimum.