Complete,perfect, and maximal controllability of discrete economic systems

Summary The purpose of this paper is to discuss three different concepts of controllability of discrete economic systems. Necessary and sufficient conditions for complete, perfect and maximal controllability are presented. The author demonstrates the logical interconnections between the dynamical and static theories of economic policy and shows that the concept of maximal controllability is of special interest for the theory of economic policy. Applications of the theoretical results to a macroeconomic decision model are presented at the end of this paper.The author wishes to thank Professor Dr. Helmut Kuhn, Göttingen, and two anonymous referees for valuable comments.