Stability conditions for a parallel dynamic neural network by means of Lyap
unov-like analysis are determined. The new learning law ensures that the id
entification error converges to zero (model matching) or to a bounded zone
(with unmodelled dynamics). Based on the neural identifier we present a loc
al optimal controller and analyse the tracking error. Our principal contrib
utions are that we provide a bound for the identification error of the para
llel neuro identifier and that we then establish a bound for the tracking e
rror of the neurocontrol.