The Contribution of Control Theory to the Analysis of Economic Policy
نویسنده
چکیده
In this paper, we give a survey of applications of control theory to the analysis of economic policy problems. We discuss applications of closed-loop control and of optimum control theory, including deterministic, stochastic and decentralized optimum control. A critical evaluation of these approaches shows that for an empirically useful theory of economic policy, the application of dynamic game theory (which in itself originated from control theory) seems to be the most promising.
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