Abstract
Optimal fiscal and monetary policies for the period 1993 to 2000 are calculated for Austria within the framework of a problem of quantitative economic policy. An intertemporal objective function is minimized subject to the constraints of a macroeconometric model. Exogenous variables of the model are forecast by time series methods. Using the optimum control algorithm OPTCON, approximately optimal policies are determined. The sensitivity of optimal policies with respect to the target values of the objective variables is investigated. It is shown that when designing intertemporal optimization problems, one must avoid to be either too ambitious or too cautious with respect to the postulated targets.
Chapter PDF
Similar content being viewed by others
References
Chow, G.C. (1975) Analysis and Control of Dynamic Economic Systems. Wiley, New York.
Chow, G.C. (1981) Econometric Analysis by Control Methods. Wiley, New York.
Kendrick, D. (1981) Stochastic Control for Economic Models. McGraw-Hill, New York.
Matulka, J. and Neck, R. (1992) OPTCON: An Algorithm for the Optimal Control of Nonlinear Stochastic Models. Annals of Operations Research 37: 375–401.
Neck, R. and Karbuz, S. (1994) Optimal Stabilization Policies for the Nineties: A Simulation Study for Austria, in Proceedings of the European Simulation Symposium 1994 (ed. A.R. Kaylan et al.), Vol. I, Istanbul.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1996 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Neck, R., Karbuz, S. (1996). Optimal policies under different assumptions about target values: An optimum control analysis for Austria. In: Doležal, J., Fidler, J. (eds) System Modelling and Optimization. IFIP — The International Federation for Information Processing. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-34897-1_29
Download citation
DOI: https://doi.org/10.1007/978-0-387-34897-1_29
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4757-6671-4
Online ISBN: 978-0-387-34897-1
eBook Packages: Springer Book Archive