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Problems of simulation and control in production and economic system (PES) under condition of economy’s modernization are discussed in the paper. The developed control system considers the coordination of three systems – PES, market and taxation institutional system. We take into account the PES features as dynamism, large number of parameters, nonlinearity, nonstationarity, strong interconnectivity and hierarchical structure. The aim of the developed models and coordinated mechanisms is to improve the decisions making effectiveness at the expense of a coherent management in PES.

Modeling and coordinated control for the production and economic system