Optimal Control Methods for Linear Discrete-Time Economic Systems

1 Macroeconomic Policies and Instrument Instability. - 1. 1 A Keynesian Economy under the Government Budget Constraint. - 1. 2 Optimal Policies by Means of Two Instruments. - 1. 3 A Combination Policy. - 1. 4 The Case Allowing Instrument Cost. - 1. 5 Formulation of a Standard Control System. - References. - 2 Optimal Control of Linear Discrete-Time Systems. - 2. 1 Fundamentals of Discrete-Time Control. - 2. 2 Controllers for One-Period Lag Equation Systems. - 2. 3 Solving Discrete Riccati Equations. - 2. 4 Application to Control of a Dynamic Leontief System. - 2. 5 Controller for a Dynamic Inequality System. - References. - 3 Observers for Linear Discrete-Time Systems. - 3. 1 Preliminaries to Discrete-Time Observers. - 3. 2 Luenberger Observers for Discrete-Time Systems. - 3. 3 Cost Performance of Optimal Control Incorporating Observers. - 3. 4 Recursive Minimum-Cost Observer. - 3. 5 Separation of Observer and Controller. - References. - 4 Filters for Linear Stochastic Discrete-Time Systems. - 4. 1 Preliminary Least-Squares Estimators. - 4. 2 Kaiman Predictor and Filter. - 4. 3 Minimal-Order Observer-Estimators: Existence. - 4. 4 Minimal-Order Observer-Estimators: Computation. - 4. 5 Economic Applications of Kaiman Filtering Methods. - References. - 5 Optimal Control of Linear Stochastic Discrete-Time Systems. - 5. 1 Controllers for Linear Systems with Additive Disturbances. - 5. 2 Controller in an Imperfect Information Case. - 5. 3 Controllers for Linear Systems with Stochastic Coefficients. - 5. 4 Certainty Equivalence in Stochastic Systems Control by Theil. - 5. 5 Optimal Control of Macroeconomic Systems 148 References. - References. - 6 Stabilization of Economic Systems under the Government Budget Constraint. - 6. 1 Dynamic Process of a Government-Budget Constrained Economy. - 6. 2 Instability of an Economy with Government Budget Deficits. - 6. 3 Instability of an Economy with Government Budget Deficits and Keynesian Policy Assignment Continuous-Time Case). - 6. 4 Optimal Control of Economic Systems with Bond-Financed Budget Deficits. - 6. 5 Optimal Control of an Open Economy with Bond-Financed Budget Deficits. - References. - Appendix Differentials of Matrix Traces. - Author Index. Language: English