Developments of Control Theory for Economic Analysis

1. Front Matter

   Pages I-XXIII

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2. Introduction to Control Theory: Methods and Algorithms

   1. Front Matter

      Pages 1-1

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   2. Development of Control Theory in Macroeconomics

      • Gregory C. Chow

      Pages 3-19

   3. Linear Controllability Results and Open Questions

      • R. Conti

      Pages 21-30

   4. A System-Theoretic Approach to the Theory of Economic Policy

      • Maria Luisa Petit

      Pages 31-45

   5. Software for Economic Optimal Control Models

      • David Kendrick

      Pages 47-59

3. Recent Developments of Control Theory: Objective Function Specification

   1. Front Matter

      Pages 61-61

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   2. Interactive Vector Optimization as a Complement to Optimal Control in Econometric Models

      • Josef Gruber

      Pages 63-82

   3. Risk Reduction and the Robustness of Economic Policies

      • Andries S. Brandsma

      Pages 83-104

   4. Optimal Economic Policies Under a Crawling-Peg Exchange-Rate System an Empirical Approach

      • Hans M. Amman, H. Jager

      Pages 105-126

   5. Some Remarks in Forward Programming

      • J. Eppers, M. Leserer

      Pages 127-134

   6. Utility and Uncertainty in Intertemporal Choice

      • Aldo Montesano

      Pages 135-142

   7. Gradient Methods in Fiml Estimation of Econometric Models

      • Giorgio Calzolari, Lorenzo Panattoni

      Pages 143-153

4. Recent Developments of Control Theory: A Game Theoretic Approach

   1. Front Matter

      Pages 155-155

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   2. Methods for the Simultaneous Use of Multiple Models in Optimal Policy Design

      • Berc Rustem

      Pages 157-186

   3. Optimal Policy Design in Interdependent Economies

      • A. J. Hughes Hallett

      Pages 187-214

   4. Hierarchical Games for Macroeconomic Policy Analysis

      • Carlo Carraro

      Pages 215-238

   5. A Dynamic and Stochastic Model of Price Leadership

      • B. Fanchon, E. Rifkin, J. K. Sengupta

      Pages 239-260

   6. Quality and Reputation Policies of Duopolists Under Asymmetric Information

      • Klaus Conrad

      Pages 261-276

5. Economic and Econometric Analysis by Control Methods

   1. Front Matter

      Pages 277-277

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Giovanni Castellani Rector of the University of Venice This book contains the Proceedings of the Conference on "Economic Policy and Control Theory" which was held at the University of Venice (Italy) on 27 January-l February 1985. The goal of the Conference was to survey the main developments of control theory in economics, by emphasizing particularly new achievements in the analysis of dynamic economic models by con­ trol methods. The development of control theory is strictly related to the development of science and technology in the last forty years. Control theory was indeed applied mainly in engineering, and only in the sixties economists started using control methods for analys­ ing economic problems, even if some preliminary economic applica­ tions of calculus of variations, from which control theory was then developed, date back to the twenties. Applications of control theory in economics also had to solve new, complicated, problems, like those encountered in optimal growth models, or like the determination of the appropriate inter­ temporal social welfare function, of the policy horizon and the relative final state of the system, of the appropriate discount factor. Furthermore, the uncertainty characterizing economic models had to be taken into account, thus giving rise to the development of stochastic control theory in economics.

• business cycle
• calculus
• economic policy
• economics
• macroeconomics
• optimization

• University of Venice, Italy

  Carlo Carraro, Domenico Sartore

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