Mathematical controllability theory of capital growth of nations (Q1207814)

The paper is concerned with deriving conditions for the controllability of capital stocks of a finite number of interconnected firms when the dynamics of capital stock growth are described as a system of functional differential equations with delay. Such systems were first considered in economics by Kalecki and Arrow. The interconnectedness of firms, labelled in the paper as ``solidarity function'', can be viewed as the manifestation of externalities which may also be manipulable by governments. The main thrust of the paper lies in developing conditions to characterize the nature of the solidarity function that will make the system controllable, i.e., move the initial capital stocks to a final state in finite time. The dynamics of the paper and the analysis on controllability can be very useful in the rapidly growing field of endogenous growth.