Control Theory and Dynamic Games in Economic Policy Analysis

This book deals with the stabilisation and control of centralised policy-making and its economic implications.

Maria Luisa Petit (Author)

9780521127158, Cambridge University Press

Paperback, published 3 December 2009

356 pages
22.9 x 15.2 x 2 cm, 0.52 kg

This book, originally published in 1990, deals with the stabilisation and control of an economic system in a dynamic setting. Unlike studies which consider only the case of centralised policy-making, Professor Petit examines both the situation in which policy decisions are taken by a single policy-maker and the case of group policy-making. The wide-ranging economic implications of the use of these methods are thoroughly discussed. The tools of optimal control and differential game theory, and their advantages and drawbacks, are examined, along with methodological implications of introducing expectations into the policy problem. This lucid and comprehensive study of control theory and dynamic games will be of great use both to economists interested in learning mathematical methods and to mathematicians interested in their economic applications.

List of figures
List of tables
Preface
1. Introduction
2. Mathematical preliminaries: the state space
3. Static and dynamic controllability
4. Different approaches to dynamic policy analysis
5. Optimal control
6. The objective function
7. Applications of optimal control
8. Decentralised decisions and differential games
9. Applications of differential games
10. Optimal policies and expectations
Notes
References
Index.

Subject Areas: Probability & statistics [PBT], Macroeconomics [KCB], Social research & statistics [JHBC]