Solution of one Global Problem by Approach of the Parametric Control Theory

Abstract

Purpose of this paper is to show the potential of parametric control theory approach for the optimal solution of global problems (in the case of the food problem) and to substantiate the benefits of joint action to solve them on the basis of the developed global multi-country computable general equilibrium model (hereinafter - Model).

The main results of the paper:

Model verification (testing the possibility of its practical application) of the constructed and calibrated Model was successfully carried out by methods of parametric control theory: using sustainability assessments and assessments of sustainability indicators of smooth mappings, which are defined by the Model; as well as through conducting of series of counterfactual and forecast scenarios.

Based on the Model a number of parametric control problems were solved in finding the optimal values of the instruments of public policy, which provide economic growth, reducing the gap in economic development between rich and poor regions, as well as increasing the production of agricultural products in the regions.

Value consists in the developed Model and in showing approaches of parametric control theory on providing guidance to address global problems and to substantiate the benefits of joint action within the framework of their decision.