Economic Models and Human Behavior:The Tension Between Mathematics and Reality

The use of mathematical models in economics has long been a subject of debate,particularly regarding the tension between mathematical precision and the unpredictability of human behavior.This paper critically examines the limitations of over-relying on mathematical models to predict economic outcomes,arguing that such models often fail to account for the social,cultural,and psychological factors that drive economic activities.The analysis highlights how attempts to quantify complex economic behaviors may lead to oversimplifications and inaccurate forecasts,as illustrated by past financial crises and market disruptions.The paper concludes by advocating for a more balanced approach that combines mathematical rigor with an understanding of human behavior to enhance the accuracy and effectiveness of economic predictions.

Multiobjective economic model predictive control using utopia-tracking for the wet flue gas desulphurization system

Efficient control of the desulphurization system is challenging in maximizing the economic objective while reducing the SO_(2) emission concentration. The conventional optimization method is generally based on a hierarchical structure in which the upper optimization layer calculates the steady-state results and the lower control layer is responsible to drive the process to the target point. However, the conventional hierarchical structure does not take the economic performance of the dynamic tracking process into account. To this end, multi-objective economic model predictive control(MOEMPC) is introduced in this paper, which unifies the optimization and control layers in a single stage. The objective functions are formulated in terms of a dynamic horizon and to balance the stability and economic performance. In the MOEMPC scheme, economic performance and SO_(2) emission performance are guaranteed by tracking a set of utopia points during dynamic transitions. The terminal penalty function and stabilizing constraint conditions are designed to ensure the stability of the system. Finally, an optimized control method for the stable operation of the complex desulfurization system has been established. Simulation results demonstrate that MOEMPC is superior over another control strategy in terms of economic performance and emission reduction, especially when the desulphurization system suffers from frequent flue gas disturbances.

Fractional Order Environmental and Economic Model Investigations Using Artificial Neural Network

The motive of these investigations is to provide the importance and significance of the fractional order(FO)derivatives in the nonlinear environmental and economic(NEE)model,i.e.,FO-NEE model.The dynamics of the NEE model achieves more precise by using the form of the FO derivative.The investigations through the non-integer and nonlinear mathematical form to define the FO-NEE model are also provided in this study.The composition of the FO-NEEmodel is classified into three classes,execution cost of control,system competence of industrial elements and a new diagnostics technical exclusion cost.The mathematical FO-NEE system is numerically studied by using the artificial neural networks(ANNs)along with the Levenberg-Marquardt backpropagation method(ANNs-LMBM).Three different cases using the FO derivative have been examined to present the numerical performances of the FO-NEE model.The data is selected to solve the mathematical FO-NEE system is executed as 70%for training and 15%for both testing and certification.The exactness of the proposed ANNs-LMBM is observed through the comparison of the obtained and the Adams-Bashforth-Moulton database results.To ratify the aptitude,validity,constancy,exactness,and competence of the ANNs-LMBM,the numerical replications using the state transitions,regression,correlation,error histograms and mean square error are also described.

Finite-time economic model predictive control for optimal load dispatch and frequency regulation in interconnected power systems

This paper presents a finite-time economic model predictive control(MPC)algorithm that can be used for frequency regulation and optimal load dispatch in multi-area power systems.Economic MPC can be used in a power system to ensure frequency stability,real-time economic optimization,control of the system and optimal load dispatch from it.A generalized terminal penalty term was used,and the finite-time convergence of the system was guaranteed.The effectiveness of the proposed model predictive control algorithm was verified by simulating a power system,which had two areas connected by an AC tie line.The simulation results demonstrated the effectiveness of the algorithm.

Virtually coupled train set control subject to space-time separation:A distributed economic MPC approach with emergency braking configuration

The emerging virtual coupling technology aims to operate multiple train units in a Virtually Coupled Train Set(VCTS)at a minimal but safe distance.To guarantee collision avoidance,the safety distance should be calculated using the state-of-the-art space-time separation principle that separates the Emergency Braking(EB)trajectories of two successive units during the whole EB process.In this case,the minimal safety distance is usually numerically calculated without an analytic formulation.Thus,the constrained VCTS control problem is hard to address with space-time separation,which is still a gap in the existing literature.To solve this problem,we propose a Distributed Economic Model Predictive Control(DEMPC)approach with computation efficiency and theoretical guarantee.Specifically,to alleviate the computation burden,we transform implicit safety constraints into explicitly linear ones,such that the optimal control problem in DEMPC is a quadratic programming problem that can be solved efficiently.For theoretical analysis,sufficient conditions are derived to guarantee the recursive feasibility and stability of DEMPC,employing compatibility constraints,tube techniques and terminal ingredient tuning.Moreover,we extend our approach with globally optimal and distributed online EB configuration methods to shorten the minimal distance among VCTS.Finally,experimental results demonstrate the performance and advantages of the proposed approaches.

Optimal dispatching method for integrated energy system based on robust economic model predictive control considering source-load power interval prediction

Effective source-load prediction and reasonable dispatching are crucial to realize the economic and reliable operations of integrated energy systems(IESs).They can overcome the challenges introduced by the uncertainties of new energies and various types of loads in the IES.Accordingly,a robust optimal dispatching method for the IES based on a robust economic model predictive control(REMPC)strategy considering source-load power interval prediction is proposed.First,an operation model of the IES is established,and an interval prediction model based on the bidirectional long short-term memory network optimized by beetle antenna search and bootstrap is formulated and applied to predict the photovoltaic power and the cooling,heating,and electrical loads.Then,an optimal dispatching scheme based on REMPC is devised for the IES.The source-load interval prediction results are used to improve the robustness of the REPMC and reduce the influence of source-load uncertainties on dispatching.An actual IES case is selected to conduct simulations;the results show that compared with other prediction techniques,the proposed method has higher prediction interval coverage probability and prediction interval normalized averaged width.Moreover,the operational cost of the IES is decreased by the REMPC strategy.With the devised dispatching scheme,the ability of the IES to handle the dispatching risk caused by prediction errors is enhanced.Improved dispatching robustness and operational economy are also achieved.

A Two-Sector Economic Growth Model with Labor Force Transfer

In this paper, a two\|sector growth model is given. The labor force transfer process from agricultural sector to industrial sector is exogenous determined. By introducing the labor force transferring function, a two\|dimension nonautonomous differential equation is obtained. The results of the model manifest that the labor force transfer delays industrial sector growth and accelerates the agricultural sector growth. It is proved that the solution of the model is asymptotic stable. By the numerical analysis, the economic growth and labor force transfer is presented under the specific parameters.

Reverse Engineering, Some Board Games as a Key to the Development of Artificial Intelligence and Construction of Economic Models

Reverse engineering, also called back engineering, is the process of extracting knowledge or designing information from anything： mechanical device electronic components, computer programs, or biological, chemical matters, and--subsequently--analyzing its components. Reverse engineering can be applied for the sake of creating artificial intelligence, e.g. when the used methods are based on very old games, such as Go and chess. Many generations of computers are able to play at the same level as human grandmasters. A computers＇ arrival at that level is due to imitation of human Go or chess play. A particular emphasis shall be placed upon the Go game, known for 5,500 years. Invented in China, it may be classified as the oldest board game, having its ardent enthusiasts until present times. Old physical issues can be easily projected upon the modeling of new economic phenomena and quantum games. The aim of this paper is to discuss the applications of reverse engineering, traditional social games and other domains, such as quantum physics, to the analysis of utterly new social as well as economic phenomena.

Step-wise synthesis of work exchange networks involving heat integration based on the transshipment model

Due to the deterioration of serious energy dilemma,energy-conservation and emission–reduction have been the strategic target in the past decades,thus people have identified the vital importance of higher energy efficiency and the influence of lower carbon development.Since work exchange network is a significant part of energy recovery system,its optima design will have dramatically significant effect on energy consumption reduction in chemical process system.With an extension of the developed transshipment model in isothermal process,a novel step-wise methodology for synthesis of direct work exchange network(WEN)in adiabatic process involving heat integration is first proposed in this paper,where a nonlinear programming(NLP)model is formulated by regarding the minimum utility consumption as objective function and optimizing the initial WEN in accordance with the presented matching rules to get the optimized WEN configuration at first.Furthermore,we focus on the work exchange network synthesis with heat integration to attain the minimal total annual cost(TAC)with the introduction of heat-exchange equipment that is achieved by the following strategies in sequence:introducing heat-exchange equipment directly,adjusting the work quantity of the adjacent utility compressors or expanders,and approximating upper/lower pressure limits consequently to obtain considerable cost savings of expanders or compressors and work utility.Finally,a case taken from the literature is studied to illustrate the feasibility and effectiveness of the proposed method.

Resource Schedule in Grid Based on Market Models

A new modern resource management method based on economic model is proposed. Giving mathematic description about economic model; analysis different resource scheduling methods based on deadline and budget constrained which present by Buyya, point out shortcoming of Buyya's schedule method. Considerate integrate factor of time and budget, by import a weight coefficient named a , puts forward a new resource schedule method named STPP based on economic models of Buyya. Contrast to old schedule strategy of Buyya through analysis and experiments, STPP policy is more flexible, and is easy to import other new QoS parameters.

A Composite Model Predictive Control Strategy for Furnaces

Tube furnaces are essential and primary energy intensive facilities in petrochemical plants. Operational optimization of furnaces could not only help to improve product quality but also benefit to reduce energy consumption and exhaust emission. Inspired by this idea, this paper presents a composite model predictive control(CMPC)strategy, which, taking advantage of distributed model predictive control architectures, combines tracking nonlinear model predictive control and economic nonlinear model predictive control metrics to keep process running smoothly and optimize operational conditions. The controllers connected with two kinds of communication networks are easy to organize and maintain, and stable to process interferences. A fast solution algorithm combining interior point solvers and Newton's method is accommodated to the CMPC realization, with reasonable CPU computing time and suitable online applications. Simulation for industrial case demonstrates that the proposed approach can ensure stable operations of furnaces, improve heat efficiency, and reduce the emission effectively.

Remodeling of the Macedonian Economy

The Macedonian economy gets out relatively little hurt by the global economic crisis not facing with financial crisis, the recession was short-lived, and social crisis emerged in modest sizes. However, the global crisis revealed the major weaknesses of the economic model which was implemented. It turned out that the Macedonian economy is very dependent on the performance of only a few sectors and movements on the prices of its most important export and import products, and that the scope of supply and demand for domestic goods and services is small. These lectures from the economic crisis posed by the need to create a new model for country economic development in the future. The application of historical, statistical, analytical and comparative method shows that Macedonia should exercise other holistic approach in the remodeling of their economy. This means that, besides keeping macroeconomic and financial policy in the future the Macedonian government should act more vigorously in the direction of creating new jobs and provide greater social security. The economic model that we propose in this paper recommends it be done by encouraging small and medium enterprises, diversification of production, encouraging domestic investments, developing human capital, improving infrastructure, encouraging exports and harmonization the macroeconomic instruments. The application of this model will result in increasing investments, industrial production and exports, increasing the competitiveness of domestic products, reducing the trade deficit and maintaining the macroeconomic stability. The general conclusion of the paper is that application of the proposed economic model should lead to realization of two most important goals： achieving lasting, sustainable and significantly higher rates of economic growth and reducing the high rate of unemployment in the country.

Quantificational analysis and simulation of Technical Barriers to Trade with two country model

The Technical Barriers to Trade （TBT） is an important problem faced to the export of China. Based on the number differences of TBT notifications between countries, we propose the concept and computational method of the technical barrier coefficient. By means of price-production and price-demand functions, a trade model with a developed country and a developing country is designed. The available trade policies such as technical barriers, tariffs and export subsidies are simulated and analyzed. According to the simulation results, several trade strategies to come over technical barriers are suggested. These suggestions were provided to several export enterprises for their export strategy design.

The Global Value Chains and the Evolution of Chinese Economic Model

According to the Word Bank,in the first 38 years of China,economic reform took 700 million people out poverty line in China at the same time benefiting the Global South economy due to the integration of the transnational enterprises global value chains with China.Chinese government understood the economic rational of global value chains,Flying Geese Model,and foreign direct investment theories and introduced policies to attract foreign capital,technology,production,and foreign buyers,placing China as the final stage of the production networks in Asia and also transforming China in the biggest buying market of many resources and energy suppliers from less developed countries in Asia,Africa,and South America.But a new model of Chinese economic development even more interconnected and interdependent with the world is now on move.Even quite before the world acknowledge the protectionist mindset of the US in Trump era,Chinese President Xi Jinping launched in 2013 a very ambitious initiative under the name of“One Road,One Belt,the 21st-Century Maritime Silk Road”to enhance a new stage of world globalization,which together with two complimentary initiatives:the“International Production Cooperation”and“Third-Country Market Cooperation”,and in complementarity with the“Made in China 2025”and“Internet Plus”plans will lead China to develop global value chains leaded by Chinese companies and integrating countries of Europe,Africa,Asia,and South America.

Construction of Regional Economic Vitality Model

Regional economic vitality reflects the scale and development potential of a region’s economy.It largely determines the development of the city,and is also affected by many factors such as population competitiveness,corporate competitiveness,market vitality,innovation vitality,and environmental vitality.A pilot model was constructed with Hebei Province as the inspection area.Quantitative measurement of regional economic vitality was made by finding 21 indicators that indirectly or indirectly affect the economic vitality of Hebei Province.By analyzing the data of 21 indicators for nearly 10 years,the time series clustering is used to achieve the dimensionality reduction of the indicators.After the dimension reduction,it is divided into four categories:overall scale,development potential,market vitality,and innovation vitality.Construct the economic vitality structure model of Hebei Province,and determine the four types of contribution to economic vitality and compare them.On this basis,more accurately grasp the indicators that affect economic vitality and work out reasonable and effective action plans.From the perspective of human resources and corporate vitality,analyze how the action plan accurately affects the economic vitality of Hebei Province[1].The 11 cities in Hebei Province are the target of regional economic vitality.The economic vitality structure model constructed uses the required contribution value to select priority indicators.Finally,the six indicators of GPD,GPD growth rate,fiscal revenue,fiscal revenue growth rate,number of industrial enterprises above designated size,and total profit of industrial enterprises above designated size were established for eleven cities in Hebei Province to construct a TOPSIS scoring model,and calculation rankings were conducted through MATLAB.Results The top three cities were Shijiazhuang,Tangshan and Cangzhou.

A Study of Mathematic Model to the Development of Regional Industry Cluster

This paper analyzes the factors that influence the development of regional industry cluster, which are location factors, accumulatable factors, and external factors. Then regarding the similarity between the development of industry cluster and biology community, a modified logistic model is built, and a field study is made between the real instances and the model.

What Competition Model for Economic Development Should China Adopt at the Present Stage?

As a major developing country,China has attracted significant attention as to whichpathitshouldfol owfortechnologicalprogress.Accordingtotheauthorofthispaper,Chinashouldcontinueto pursue the international division of labor and competition strategy based on comparative advantages.Meanwhile,China should,through reform and adjustment,build a national innovation system capable ofplaying an e ective role in the future.However,laying too much emphasis on proprietary innovation atthe present stage wil bring about undesirable consequences.The timing for China to embark on a path oftechnologicaldevelopmentthroughproprietaryinnovationissubjecttothechangesbothintradeconditionsandin income distribution e ects arising from proprietary innovation.

Information Models for Forecasting Nonlinear Economic Dynamics in the Digital Era

The aim of this study was to develop an adequate mathematical model for long-term forecasting of technological progress and economic growth in the digital age (2020-2050). In addition, the task was to develop a model for forecast calculations of labor productivity in the symbiosis of “man + intelligent machine”, where an intelligent machine (IM) is understood as a computer or robot equipped with elements of artificial intelligence (AI), as well as in the digital economy as a whole. In the course of the study, it was shown that in order to implement its goals the Schumpeter-Kondratiev innovation and cycle theory on forming long waves (LW) of economic development influenced by a powerful cluster of economic technologies engendered by industrial revolutions is most appropriate for a long-term forecasting of technological progress and economic growth. The Solow neoclassical model of economic growth, synchronized with LW, gives the opportunity to forecast economic dynamics of technologically advanced countries with a greater precision up to 30 years, the time which correlates with the continuation of LW. In the information and digital age, the key role among the main factors of growth (capital, labour and technological progress) is played by the latter. The authors have developed an information model which allows for forecasting technological progress basing on growth rates of endogenous technological information in economics. The main regimes of producing technological information, corresponding to the eras of information and digital economies, are given in the article, as well as the Lagrangians that engender them. The model is verified on the example of the 5th information LW for the US economy (1982-2018) and it has had highly accurate approximation for both technological progress and economic growth. A number of new results were obtained using the developed information models for forecasting technological progress. The forecasting trajectory of economic growth of developed countries (on the example of the USA) on the upward stage of the 6th LW (2018-2042), engendered by the digital technologies of the 4th Industrial Revolution is given. It is also demonstrated that the symbiosis of human and intelligent machine (IM) is the driving force in the digital economy, where man plays the leading role organizing effective and efficient mutual work. Authors suggest a mathematical model for calculating labour productivity in the digital economy, where the symbiosis of “human + IM” is widely used. The calculations carried out with the help of the model show: 1) the symbiosis of “human + IM” from the very beginning lets to realize the possibilities of increasing work performance in the economy with the help of digital technologies;2) the largest labour productivity is achieved in the symbiosis of “human + IM”, where man labour prevails, and the lowest labour productivity is seen where the largest part of the work is performed by IM;3) developed countries may achieve labour productivity of 3% per year by the mid-2020s, which has all the chances to stay up to the 2040s.

Memory-Type Control Charts Through the Lens of Cost Parameters

A memory-type control chart utilizes previous information for chart construction.An example of a memory-type chart is an exponentially-weighted moving average(EWMA)control chart.The EWMA control chart is well-known and widely employed by practitioners for monitoring small and moderate process mean shifts.Meanwhile,the EWMA median chart is robust against outliers.In light of this,the economic model of the EWMA and EWMA median control charts are commonly considered.This study aims to investigate the effect of cost parameters on the out-of-control average run lengthðARL_(1)Þin implementing EWMA and EWMA median control charts.The economic model was used to compute the ARL_(1) parameter.The 14 input parameters were identified and the analysis was carried out based on the one-parameter-at-a-time basis.When the input parameters change based on a predetermined percentage,the ARL_(1) is affected.According to the results of the EWMA chart,nine input parameters had an effect andfive input parameters had no effect on the ARL_(1) parameter.Further,only seven of the 14 input parameters had an effect on the ARL_(1) of the EWMA median chart.However,the effect of each input parameter on the ARL_(1) was different.Moreover,the ARL_(1) for the EWMA median chart was smaller than the EWMA chart.This analysis is crucial to observe and determine the input parameters that have a significant impact on the ARL_(1) of the EMWA and EWMA median control charts.Hence,practitioners can obtain an overview of the influence of the input parameters on the ARL_(1) when implementing the EWMA and EWMA median control charts.

Critical Analysis of Increasingly Mathematical Economics in the Modern Society

This paper critically examines the escalating trend of mathematization in economics,highlighting its implications and controversies in contemporary economic research.While the application of sophisticated mathematical models and statistical techniques has enhanced the precision,rigor,and status of economics within academia and practical application,concerns arise regarding the potential oversimplification and detachment from real-world complexities.The adoption of mathematical tools has arguably led to a focus on theoretically tractable problems at the expense of those more relevant to practical economic and social issues.This paper explores both the benefits and limitations of this trend,discussing how the reliance on quantitative methods affects the innovation,comprehensibility,and application of economic theories.We argue for a balanced approach that fosters innovation by integrating qualitative insights and embracing interdisciplinary methods to ensure economics remains both rigorous and relevant to societal needs.