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Stackelberg solutions in macroeconometric policy models with a decentralized decision structure

  • Aart J. de Zeeuw
Differential Games
Part of the Lecture Notes in Control and Information Sciences book series (LNCIS, volume 22)

Abstract

Macroeconometric policy models with a decentralized decision structure can often be viewed upon as a linear quadratic N-person nonzero sum difference game with exogenous inputs, nonfeasible ideal paths and a fixed time horizon. When the decision structure is also hierarchical, the Stackelberg solution concept can be used to model the decision structure. In this paper the open loop and feedback Stackelberg strategies for such a game are derived and an application is given in the form of a small linked econometric model for the Common Market.

Key Words

L.Q.-difference games Stackelberg solutions linked macroeconometric policy models 

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References

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    Medanic, J. and Radojevic, D., “Multilevel Stackelberg Strategies in Linear-Quadratic Systems”, JOTA, vol. 24, pp. 485–497, 1978.Google Scholar
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    de Zeeuw, Aart J., “Stackelberg Solutions in Macro-econometric Policy Models with a Decentralized Decision Structure I”, Research Memorandum FEW 84, Tilburg University, June 1979.Google Scholar
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Copyright information

© Springer-Verlag 1980

Authors and Affiliations

  • Aart J. de Zeeuw
    • 1
  1. 1.Department of EconometricsTilburg UniversityTilburgthe Netherlands

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