Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems
Due to the vital role of financial systems in today’s sophisticated world, applying intelligent controllers through management strategies is of crucial importance. We propose to formulate the control problem of the macroeconomic system as an optimization problem and find optimal actions using a rein...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-02-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/10/3/499 |
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| author | Qing Ding Hadi Jahanshahi Ye Wang Stelios Bekiros Madini O. Alassafi |
| author_facet | Qing Ding Hadi Jahanshahi Ye Wang Stelios Bekiros Madini O. Alassafi |
| author_sort | Qing Ding |
| collection | DOAJ |
| description | Due to the vital role of financial systems in today’s sophisticated world, applying intelligent controllers through management strategies is of crucial importance. We propose to formulate the control problem of the macroeconomic system as an optimization problem and find optimal actions using a reinforcement learning algorithm. Using the Q-learning algorithm, the best optimal action for the system is obtained, and the behavior of the system is controlled. We illustrate that it is possible to control the nonlinear dynamics of the macroeconomic systems using restricted actuation. The highly effective performance of the proposed controller for uncertain systems is demonstrated. The simulation results evidently confirm that the proposed controller satisfies the expected performance. In addition, the numerical simulations clearly confirm that even when we confined the control actions, the proposed controller effectively finds optimal actions for the nonlinear macroeconomic system. |
| first_indexed | 2024-03-09T23:30:58Z |
| format | Article |
| id | doaj.art-273f6a56ba594f9badca0069cb8fdc76 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T23:30:58Z |
| publishDate | 2022-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-273f6a56ba594f9badca0069cb8fdc762023-11-23T17:08:32ZengMDPI AGMathematics2227-73902022-02-0110349910.3390/math10030499Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic SystemsQing Ding0Hadi Jahanshahi1Ye Wang2Stelios Bekiros3Madini O. Alassafi4College of Liberal Arts and Sciences, National University of Defense Technology, Changsha 410073, ChinaDepartment of Mechanical Engineering, University of Manitoba, Winnipeg, MB R3T 5V6, CanadaDepartment of Mathematics, Huzhou University, Huzhou 313000, ChinaDepartment of Banking and Finance, FEMA, University of Malta, MSD 2080 Msida, MaltaDepartment of Information Technology, Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah 21589, Saudi ArabiaDue to the vital role of financial systems in today’s sophisticated world, applying intelligent controllers through management strategies is of crucial importance. We propose to formulate the control problem of the macroeconomic system as an optimization problem and find optimal actions using a reinforcement learning algorithm. Using the Q-learning algorithm, the best optimal action for the system is obtained, and the behavior of the system is controlled. We illustrate that it is possible to control the nonlinear dynamics of the macroeconomic systems using restricted actuation. The highly effective performance of the proposed controller for uncertain systems is demonstrated. The simulation results evidently confirm that the proposed controller satisfies the expected performance. In addition, the numerical simulations clearly confirm that even when we confined the control actions, the proposed controller effectively finds optimal actions for the nonlinear macroeconomic system.https://www.mdpi.com/2227-7390/10/3/499macroeconomic systemreinforcement learningintelligent controloptimal controller |
| spellingShingle | Qing Ding Hadi Jahanshahi Ye Wang Stelios Bekiros Madini O. Alassafi Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems Mathematics macroeconomic system reinforcement learning intelligent control optimal controller |
| title | Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems |
| title_full | Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems |
| title_fullStr | Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems |
| title_full_unstemmed | Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems |
| title_short | Optimal Reinforcement Learning-Based Control Algorithm for a Class of Nonlinear Macroeconomic Systems |
| title_sort | optimal reinforcement learning based control algorithm for a class of nonlinear macroeconomic systems |
| topic | macroeconomic system reinforcement learning intelligent control optimal controller |
| url | https://www.mdpi.com/2227-7390/10/3/499 |
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