government and central bank interaction under uncertainty: a differential games approach

Government and Central Bank Interaction under Uncertainty: A Differential Games Approach

Abstract Today, debt stabilization in an uncertain environment is an important issue. In particular, the question how fiscal and monetary authorities should deal with this uncertainty is of much importance. Especially for some developing countries such as Iran, in which on average 60 percent of government revenues comes from oil, and consequently uncertainty about oil prices has a large effec...

Central Bank Independence and Financing Government Spending*

How Might a Central Bank Report Uncertainty?

An important question for central banks is how they should report the uncertainty of their forecasts. This paper discusses a way in which a central bank could report the uncertainty of its forecasts in a world in which it used a single macroeconometric model to make its forecasts and guide its policies. Suggestions are then made as to what might be feasible for a central bank to report given th...

Dynamic Oligopolistic Games Under Uncertainty: A Stochastic Programming Approach*

This paper studies several stochastic programming formulations of dynamic oligopolistic games under uncertainty. We argue that one of the models, namely Games with Probabilistic Scenarios (GPS), provides an appropriate formulation. For such games, we show that symmetric players earn greater expected profits as demand volatility increases. This result suggests that even in an increasingly volati...

Interaction-driven Markov games for decentralized multiagent planning under uncertainty

In this paper we propose interaction-driven Markov games (IDMGs), a new model for multiagent decision making under uncertainty. IDMGs aim at describing multiagent decision problems in which interaction among agents is a local phenomenon. To this purpose, we explicitly distinguish between situations in which agents should interact and situations in which they can afford to act independently. The...

A multi-product green supply chain under government supervision with price and demand uncertainty

In this paper, a bi-level game-theoretic model is proposed to investigate the effects of governmental financial intervention on green supply chain. This problem is formulated as a bi-level program for a green supply chain that produces various products with different environmental pollution levels. The problem is also regard uncertainties in market demand and sale price of raw materials and pro...