Contemporary macroeconomics and optimal control theory

Stochastic optimal control theory

Control theory is a mathematical description of how to act optimally to gain future rewards. In this paper I give an introduction to deterministic and stochastic control theory; partial observability, learning and the combined problem of inference and control. Subsequently, I discuss a class of non-linear stochastic control problems that can be efficiently solved using a path integral. In this ...

Optimal Control Theory

Optimal control theory is a mature mathematical discipline with numerous applications in both science and engineering. It is emerging as the computational framework of choice for studying the neural control of movement, in much the same way that probabilistic inference is emerging as the computational framework of choice for studying sensory information processing. Despite the growing popularit...

Quantum optimal control theory

The control of quantum dynamics via specially tailored laser pulses is a longstanding goal in physics and chemistry. Partly, this dream has come true, as sophisticated pulse-shaping experiments allow us to coherently control product ratios of chemical reactions. The theoretical design of the laser pulse to transfer an initial state to a given final state can be achieved with the help of quantum...

Coordination Theory, the Stag Hunt and Macroeconomics

Coordination theory may well have application to systems generally. In particular, coordination theory may provide insights for systems in which a diversity of outcomes seems to characterize seemingly similar environments, for system instability, and for decentralized system collapse. Coordination theory examines situations involving multiple, and, in the extreme, a continuum, of Nash equilibri...

Optimality Of Monetary And Fiscal Policies In Iran: An Application Of The Stochastic Optimal Control Theory