Optimal control of linear econometric models with intermittent controls

Christophe Deissenberg

No 127, Discussion Papers, Series I from University of Konstanz, Department of Economics

Abstract: Dynamic Programming is used to derive the optimal feedback solution to the minimization of a quadratic welfare loss-functional subject to a linear econometric model, when the value of some instrument variables can not be optimized in every model period, but only in single ones. In this way, the relative inertia of fiscal policy-making, as compared to monetary policymaking, can e.g. be taken into account. Analytical expressions are derived for the optimal feedback rules and for the minimum expected losses, and literative schemes are proposed for their numerical computation. It is suggested that a numerical analysis of the economic gain to be realized by making more frequent adjustment of fiscal policy variables than is actually the case could yield valuable information for policy-makers.

Date: 1979
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/78114/1/688818099.pdf (application/pdf)

Related works:
Journal Article: Optimal Control of Linear Econometric Models with Intermittent Controls (1980)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:kondp1:127

Access Statistics for this paper

More papers in Discussion Papers, Series I from University of Konstanz, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().