Abstract
Do feedback controls have favorable countercyclical effects? Can they make matters worse? How responsive is the macro system to the control parameters? These questions, which delineate the present effort, are hardly new. They have been asked and reasked; they have been answered and reanswered. Along the way they have given rise to a host of precedents including the seminal pieces by Friedman (1948; 1959, pp. 89–99) and Phillips (1954; 1957); the challenging endeavors by Pack (1968), Fischer and Cooper (1973), Sargent and Wallace (1976), Phelps and Taylor (1977), Howitt (1981), and Gapinski (1982, pp. 228–237); and the strict optimal-control works by Chow (1975; 1981) and Garbade (1975; 1977). What is new here is not the questions but rather the context within which they are asked. It is capital theoretic.1
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© 1987 Martinus Nijhoff Publishers, Dordrecht
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Gapinski, J.H. (1987). Capital Theoretics, Business Cycles, and Feedback Policy: An Experiment in Macroeconomic Control. In: Carraro, C., Sartore, D. (eds) Developments of Control Theory for Economic Analysis. Advanced Studies in Theoretical and Applied Econometrics, vol 7. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3495-5_17
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