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Control Methods and Quantitative Economic Policy

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Abstract

Our intention in the present paper is to emphasise certain issues which have been neglected in the literature but which will have important implications on the practical application of control methodology to economic management.

The word optimal carries with it the suggestion that the system has desirable properties in general, but of course this need not be the case. In particular, [it can be shown] that the optimal system has properties which cannot usually be achieved in practice and may have properties that are highly undesirable.

H. H. Rosenbrock and P. D. McMorran, ‘Good, Bad or Optimal’, IEEE Trans. Aut. Control, vol. AC. 16, no. 6, 1971.

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© 1979 Mark Salmon and Peter Young

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Salmon, M., Young, P. (1979). Control Methods and Quantitative Economic Policy. In: Holly, S., Rüstem, B., Zarrop, M.B. (eds) Optimal Control for Econometric Models. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-16092-1_5

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