An Application of System Identification Method on a Regional Economic System

The purpose of this paper is to realize fuzzy control in regional economy. This paper presents a new idea of system identification based on fuzzy evaluation. It applies with parametric estaimation to analyze data of the input and the output in the unlinear system, then selects a regional economic system model from lots of unlinear models by means of system identification method. The result is that ARX117 model is the best one and the IV Estimation Method is suggested to be used. Since this ARX model can reflect the complex feature of regional economic system by integration of experts' knowledge. We can design the most reasonable fuzzy controller for the regional system.