Abstract
In this paper it is proposed to associate the optimal policy feedback coefficients with explicit error bands. The framework is the standard econometric decision model, where the welfare loss function is quadratic, and the set of constraints is given by a linear econometric model. We consider the numerically specified parameters of the optimal policy feedback rules to be derived estimates from the estimated parameters of the econometric model. Accordingly the asymptotic distribution of the estimated feedback parameters will be derived from the asymptotic distribution of the consistently estimated parameters of the econometric model.A numerical example will be given.
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.
