International Journal of Control, Automation, and Systems 2024; 22(11): 3538-3544
https://doi.org/10.1007/s12555-023-0549-6
© The International Journal of Control, Automation, and Systems
This note aims to empirically verify the control system model of profit rate established by Park and Yang [4]. Specifically, it is shown that the real profit rate has gradually fallen in 8 countries over the last several decades. Then, using the parameters estimated from the real data, the simulated profit rates are obtained from the control system model, and compared with the real profit rates. As a result, this note shows that although the short-run behaviors are different, the control system model well captures the long-run decline in profit rate for all countries.
Keywords Economics, feedback control system, profit rate.
International Journal of Control, Automation, and Systems 2024; 22(11): 3538-3544
Published online November 1, 2024 https://doi.org/10.1007/s12555-023-0549-6
Copyright © The International Journal of Control, Automation, and Systems.
Seong-Jin Park
Ajou University
This note aims to empirically verify the control system model of profit rate established by Park and Yang [4]. Specifically, it is shown that the real profit rate has gradually fallen in 8 countries over the last several decades. Then, using the parameters estimated from the real data, the simulated profit rates are obtained from the control system model, and compared with the real profit rates. As a result, this note shows that although the short-run behaviors are different, the control system model well captures the long-run decline in profit rate for all countries.
Keywords: Economics, feedback control system, profit rate.
Vol. 22, No. 11, pp. 3253~3544