Abstract
Short-term economic stabilization policy is approached as a problem in optimal control. The optimal control problem is defined as a dual discrete time tracking problem (nominal state and nominal policy trajectories are tracked) for a linear time-invariant system with a quadratic cost functional. This problem is solved analytically, and the solution is applied to a 28 state variable quarterly econometric model. The experimental results demonstrate that this approach is valuable both as a tool for policy planning and as a method of analyzing the dynamic properties of econometric models.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
