Stabilization of the business cycles of interconnected finance agents is performed with the use of a new nonlinear optimal control method. First, the dynamics of the interacting finance agents and of the associated business cycles is described by a modeled of coupled nonlinear oscillators. Next, this dynamic model undergoes approximate linearization round a temporary operating point which is defined by the present value of the system's state vector and the last value of the control inputs vector that was exerted on it. The linearization procedure is based on Taylor series expansion of the dynamic model and on the computation of Jacobian matrices. The modelling error, which is due to the truncation of higher-order terms in the Taylor series expansion is considered as a disturbance which is compensated by the robustness of the control loop. Next, for the linearized model of the interacting finance agents, an H-infinity feedback controller is designed. The computation of the feedback control gain requires the solution of an algebraic Riccati equation at each iteration of the control algorithm. Through Lyapunov stability analysis it is proven that the control scheme satisfies an H-infinity tracking performance criterion, which signifies elevated robustness against modelling uncertainty and external perturbations. Moreover, under moderate conditions the global asymptotic stability features of the control loop are proven.
|Titolo:||Stabilization of business cycles of finance agents using nonlinear optimal control|
|Data di pubblicazione:||2017|
|Appare nelle tipologie:||4.1 Contributi in Atti di convegno|