Non-neutrality of economic policy: An application of the Tinbergen-Theil's approach to a strategic context
Nicola Acocella and
Giovanni Di Bartolomeo ()
No 82, Working Papers from University of Rome La Sapienza, Department of Public Economics
Issues of policy effectiveness and neutrality are widespread in the economic literature. They have been increasingly raised in specific contexts within the class of LQ (linear-quadratic) policy games in the last 20 years, notably with reference to monetary policy. The more general conditions ensuring nonneutrality in a strategic environment remain however to be inquired. We fill this gap by applying the classical theory of economic policy to a strategic context. This is also useful to highlight some existence conditions for policy game solutions. We restrict ourselves to the common LQ-games in a static perfect information framework, but our simple logic can be extended to other more general situations.
Keywords: LQ-policy games; policy ineffectiveness; controllability. (search for similar items in EconPapers)
JEL-codes: C72 E52 E61 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Non-neutrality of economic policy: An application of the Tinbergen-Theil’s approach to a strategic context (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sap:wpaper:wp82
Access Statistics for this paper
More papers in Working Papers from University of Rome La Sapienza, Department of Public Economics Contact information at EDIRC.
Bibliographic data for series maintained by Luisa Giuriato ().