State-Space Realization of Linear Econometric Systems

In authors' preceding article, general considerations had been made on the economic system modelling and some interesting aspects about tbe model ling of dirrerent socio-economic systems are disouqsed.In present paper a comparative study on state-space realization of existing linear multivariable econometric models has been made with a view to their merits and drawbacks. This paper alsoreveals in detail how conceptual ideas in control field are corresponding to those in economy field, so that the realization procedures and control concepts may be vested with economic implications. Finally, autbors recommend ε-minimal dimensional realization and its algorithm as the pre erable method for economy modeling of this country.