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Information and Efficiency in Economic Decision pp 297–348Cite as

Stochastic models in dynamic economics: problems of time inconsistency, causality and estimation

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Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 4))

Abstract

The theory of feedback and optimal control, originally developed for and applied most successfully in physical and engineering systems, has found many applications in dynamic economics for over two decades. Our understanding and analysis of the dynamic economic systems in the form of difference or differential equations in time have been greatly enhanced by developments in control theory, specifically in three particular areas: (a) the theory of economic policy, which deals with the problem of choosing optimal instruments or controls, (b) the method of structural economic analysis in a model, which deals with alternative forms of specification of an econometric model and its implicit and explicit constraints, and (c) the theory of econometric estimation, which seeks to derive in some sense optimal estimates of parameters of dynamic models from given observations.

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Authors
  1. Jati K. Sengupta
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© 1985 Martinus Nijhoff Publishers, Dordrecht

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Sengupta, J.K. (1985). Stochastic models in dynamic economics: problems of time inconsistency, causality and estimation. In: Information and Efficiency in Economic Decision. Advanced Studies in Theoretical and Applied Econometrics, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-5053-5_12

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  • DOI: https://doi.org/10.1007/978-94-009-5053-5_12

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-8737-7

  • Online ISBN: 978-94-009-5053-5

  • eBook Packages: Springer Book Archive

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