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).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Box, G. E. P. and Jenkins, G. M. (1970) ‘Time Series Analysis, Forecasting and Control’ (Holden Day).
Bray, J. (1971) ‘Proposed Structure for a Simple Control Model of the U.K. Economy’, PREM Discussion Paper no. 1.
Bray, J. (1975) ‘Optimal Control of a Noisy Economy with the U.K. as an Example’, J. R. Stat. Soc. (A), 138.
Preston, A. J., and Wall, K. D. (1973), ‘Some Aspects of the Use of State Space models in Econometrics’, PREM Discussion Paper no. 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.
Rüstem, B. et al. (1977), ‘Iterative Respecification of a Quadratic Objective Function’ Chapter 6 of this volume.
Wall, K. D. (1976), ‘FIML Estimation of Rational Distributed Lag Structure Form Models’, PREM Discussion Paper no. 11.
Wall, K. D. and Westcott, J. H. (1974), ‘Macroeconomic Modelling for Control’, IEEE Trans. On Aut. Control, AC-19, no. 6, Dec.
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.
Westcott, J. H., et al. (1977), ‘A Control Theory Framework for Policy Analysis’ (Chapter 7 above).
Zarrop, M. E., et al. (1977), ‘Control of the LBS Econometric Model via a Control Model’ (Chapter 10 below).
Editor information
Editors and Affiliations
Copyright information
© 1979 S. Holly, B. Rüstem, J. H. Westcott, M. B. Zarrop and R. Becker
About this chapter
Cite this chapter
Holly, S., Rüstem, B., Westcott, J.H., Zarrop, M.B., Becker, R. (1979). Control Exercises with a Small Linear Model of the UK Economy. 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_8
Download citation
DOI: https://doi.org/10.1007/978-1-349-16092-1_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-16094-5
Online ISBN: 978-1-349-16092-1
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)