Abstract
In this chapter we develop methods for the optimal control of large-scale nonlinear models containing forward expectations. We then show how optimal control methods can be used and interpreted in the context of model analysis rather than policy analysis. Finally, we present an empirical examination of the inflation-unemployment trade-offs in three large-scale models which serves to evaluate the cost of the optimal control algorithms and to demonstrate their use in model analysis.
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© 1992 Springer Science+Business Media Dordrecht
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Fisher, P. (1992). Optimal Control and Inflation-Unemployment Trade-Offs. In: Rational Expectations in Macroeconomic Models. Advanced Studies in Theoretical and Applied Econometrics, vol 26. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8002-1_7
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DOI: https://doi.org/10.1007/978-94-015-8002-1_7
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-481-4188-3
Online ISBN: 978-94-015-8002-1
eBook Packages: Springer Book Archive