The Use of Optimal Control in Economics

  • Penelope A. Rowlatt
Part of the NATO Conference Series book series (NATOCS, volume 16)

Abstract

Optimal control theory provides a powerful and efficient method of deriving rules which will enable a dynamic system to be held to a preferred path. This makes it appear at first sight eminently suitable to be used as a tool to assist economic policymakers in their task of improving the performance of the economy. Developments within the field of economics suggest, however, that there are reasons why this may not be the case. My object in this paper is to describe two reasons why economists are dubious about the efficacy of optimal control for deriving economic policy.

Keywords

Covariance Income Omic Milton 

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Copyright information

© Plenum Press, New York 1984

Authors and Affiliations

  • Penelope A. Rowlatt
    • 1
  1. 1.H.M. TreasuryLondonUK

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