This study has twofold purpose. First, it intends to show that optimal control theory can provide an important tool for analyzing and understanding the dynamic properties of a macroeconomic model, for formulating stabilization policies based on that model, and for better understanding in a quantitative way the trade-offs that the economic policy maker faces. Second, it intends to examine the value of optimal control as an aid in the determination of policy in developing countries. / The first objective is met with the development of a small quarterly macroeconomic model of the U.S. economy. The specification and estimation of the model are given in this study, and the model's dynamic properties are explored. The second purpose is met with the application of optimal control theory to a small annual model of the Yugoslav economy. / Several experiments are run under different sets of assumptions about economic goals and policy commitments. As usual in optimal control analyses, these conditions are represented by a cost function that specifies the relative penalities for deviations of economic targets and control variables from their desired paths. / The results indicate that the value of optimal control as an aid in the determination of policy depends largely (if not entirely) on the robustness, accuracy, and dynamic nature of the estimated econometric model. They also show that, given such a model, an optimal-control approach is probably the best one not only for short-term policy planning but also for a better comprehension of the dynamic trade-offs that a policy maker will eventually face in the course of macroeconomic planning. / Source: Dissertation Abstracts International, Volume: 51-12, Section: A, page: 4214. / Major Professor: James H. Gapinski. / Thesis (Ph.D.)--The Florida State University, 1991.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_78356 |
| Contributors | Salazar-Velasquez, Carlos M., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 213 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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