Recent Models in Dynamic Economics: Problems of Estimating Terminal Conditions
AbstractRecent policy applications of control theory methods in dynamic economic models raise the issue of imposing the transversality condition for determining a unique optimal control policy. In a stochastic framework this issue involves alternative methods of estimation, which are discussed here both theoretically and empirically. The economic implications of the alternative methods are analyzed here in some detail through several recent dynamic models in economic growth and exchange rate instability.
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Bibliographic InfoPaper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt05g0d8gm.
Date of creation: 01 Jan 1997
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Models; Dynamic; Economics; Estimating; Terminal; Conditions;
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"Optimal Control, Expectations and Uncertainty,"
Cambridge Books, Cambridge University Press,
Cambridge University Press, number 9780521126335.
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- repec:fth:calaec:12-96 is not listed on IDEAS
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