Advertisement

Control Exercises with a Small Linear Model of the UK Economy

  • S. Holly
  • B. Rüstem
  • J. H. Westcott
  • M. B. Zarrop
  • R. Becker
Chapter

Abstract

The use of the methods of optimal control in the formulation of economic policies has been demonstrated in Bray (1975) and Wall and Westcott (1975), as well as in countless other papers. The results reported here are in the same vein as the Bray and Wall and Westcott papers with a linear model, a quadratic objective function and gaussian stochastic disturbances. Rather, however, than go over ground that has already been covered we will focus in this paper on some less central aspects of the control framework. This will provide a complementary study to some more recent work reported in Rustem et al. and Zarrop et al. (Chapters 6 and 10 of this volume).

Keywords

Exchange Rate Econometric Model Import Price Unit Labour Cost Indirect Taxis 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Box, G. E. P. and Jenkins, G. M. (1970) ‘Time Series Analysis, Forecasting and Control’ (Holden Day).Google Scholar
  2. Bray, J. (1971) ‘Proposed Structure for a Simple Control Model of the U.K. Economy’, PREM Discussion Paper no. 1.Google Scholar
  3. Bray, J. (1975) ‘Optimal Control of a Noisy Economy with the U.K. as an Example’, J. R. Stat. Soc. (A), 138.Google Scholar
  4. Preston, A. J., and Wall, K. D. (1973), ‘Some Aspects of the Use of State Space models in Econometrics’, PREM Discussion Paper no. 5.Google Scholar
  5. Rüstem, B. et al. (1976), ‘Recursive Parameter Estimation using the Kalman Filter: An application to Analyse Time-Varying Model Parameters and Structural Change’, Proc. European Meeting of the Econometric Society, Helsinki, 23–27 Aug.Google Scholar
  6. Rüstem, B. et al. (1977), ‘Iterative Respecification of a Quadratic Objective Function’ Chapter 6 of this volume.Google Scholar
  7. Wall, K. D. (1976), ‘FIML Estimation of Rational Distributed Lag Structure Form Models’, PREM Discussion Paper no. 11.Google Scholar
  8. Wall, K. D. and Westcott, J. H. (1974), ‘Macroeconomic Modelling for Control’, IEEE Trans. On Aut. Control, AC-19, no. 6, Dec.Google Scholar
  9. Wall, K. D. and Westcott, J. H. (1975), ‘Policy optimisation studies with a simple control model of the U.K. Economy’, IFAC/75 Congress, Boston, Mass., 24–30 Aug.Google Scholar
  10. Westcott, J. H., et al. (1977), ‘A Control Theory Framework for Policy Analysis’ (Chapter 7 above).Google Scholar
  11. Zarrop, M. E., et al. (1977), ‘Control of the LBS Econometric Model via a Control Model’ (Chapter 10 below).Google Scholar

Copyright information

© S. Holly, B. Rüstem, J. H. Westcott, M. B. Zarrop and R. Becker 1979

Authors and Affiliations

  • S. Holly
  • B. Rüstem
  • J. H. Westcott
  • M. B. Zarrop
  • R. Becker

There are no affiliations available

Personalised recommendations