Purpose
– The purpose of this paper is to demonstrate an effectiveness of applying a number of the new methods, proposed in the parametric control theory for testing macroeconomic models for the possibility of their practical application.
Design/methodology/approach
– Approaches of system analysis on building and calibrating the mathematical models; provisions of the parametric control theory for both numerical testing of the calibrated models for the possibility of their practical application and solving the parametric control problems.
Findings
– First, one global computable general equilibrium model (CGE model) is built and calibrated. Second, in solving the problem of testing this model for the possibility of its practical application the effectiveness of applying two developed numerical algorithms is demonstrated. These algorithms are for estimating stability indicators and estimating stability (in the sense of the theory of smooth mappings stability) of mappings defined by the model. Third, on the base of the tested CGE model there are given the solution results for a number of the parametric control problems aimed at economic growth and decrease of economic disparities of regions.
Originality/value
– By the example of the developed CGE model, it is demonstrated an approach of the parametric control theory for testing macroeconomic models for the possibility of their practical application.
Evaluation of Optimal International Economic Policy based on both the Parametric Control Theory and Global Computable General Equilibrium Model
