Economic Impact of the Structural Changes of Production Technology: A Robust Approach

In this article, edge theorem and boundary theorem, one of the most important results obtained recently in the field of robust control theory, is applied to analyze the economic impact of structural change of production technology in one economic sector, by means of the famous dynamic Leontief input–output model. Two theorems, parallel to edge theorem and boundary theorem, are given in terms of economics in this paper. It is argued that in a sense the complex analysis about the economic impact of production technological changes is equivalent to a one-dimensional computation problem, which is easy to solve. A case study is given in the last section of this paper.