Optimal stabilization policy with instruments of differing frequency
type: Item
instance of: scholarly article
title: Optimal stabilization policy with instruments of differing frequency
zbMATH Open document ID: 0629.90023
DOI: 10.1016/0165-4896(87)90031-X
author: B. George
published in: Mathematical Social Sciences
publication date: 1987-01-01T00:00:00Z
review text: The paper presents an alternative approach to an optimal stabilization policy of linear econometric models whose policy instruments are subject to different frequency of adjustment. The fiscal policy is to be adjusted only at the beginning of the fiscal year, the monetary policy can be continuously revisable throughout the planning horizon. For the linear model with constant coefficients a combination of open-loop policies applied for the variables of lower frequency and closed-loop policies applied for the variables of higher frequency is suggested as a solution concept. For the random coefficient linear model the optimal solution is obtained using a feedback form of the open-loop policies.
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 62P20
zbMATH DE Number: 4025122
zbMATH Keywords: non-identical frequency
zbMATH Keywords: random-coefficient model
zbMATH Keywords: optimal stabilization
zbMATH Keywords: linear econometric models
zbMATH Keywords: open-loop policies
zbMATH Keywords: feedback
reviewed by: Mikulas Luptacik
MaRDI profile type: Publication
full work available at URL: 0165-4896(87)90031-x
OpenAlex ID: W2080580930
description: scientific article; zbMATH DE number 4025122