Linking these two lines of research, this paper suggests total factor productivity growth as an ICAPM
state variable and further indicates that productivity risk exposure explains more than half of the one-month industry momentum profits.
Set pillar compression displacement u as the
state variable; then according to cusp catastrophe theory, the equation of the support system catastrophe model for equilibrium surface can be obtained (as shown in the following equation):
Once [??](t) stands for a set of unmeasured
state variable components, (17) can be interpreted as a state observer.
Using an additional
state variable which is in fact redundant, the optimality contract with hidden savings is presented in Section 5.
Step 5: Define
State Variable. Since the discrete large-signal state equations in (A.15), (A.16), and (A.21) have a high nonlinearity, control design technique based on the linear control theory cannot directly be applied.
[Q.sub.i] for i = 1, ..., 9 is the right-hand side of the differential equations of ith
state variable in system (1).
Input the initial
state variable, the desired
state variable, and the planning time.
Treating [T.sub.l] as a
state variable, the system can be described as follows: