Abstract
This paper concerns the problem of disturbance localization and pole shifting by dynamic compensation in multivariable linear systems with inaccessible state vector. A necessary and sufficient condition for the solvability of the problem is given. Two synthesis procedures of the compensator are presented: one is based on an observer and the other is based on a dual observer. The observer designed by the proposed procedure acts as as unknown input observer for a linear function. An improved procedure of designing a reduced order unknown input observer is also given. The result may be applicable to reducing the compensator order.

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