IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v47y1995i1p98-116.html
   My bibliography  Save this article

An Analysis of the Impact of Finite Horizons on Macroeconomic Control

Author

Listed:
  • Blake, Andrew P
  • Westaway, Peter F

Abstract

Macroeconomic control exercises using large-scale nonlinear consistent expectations models necessarily employ a finite time horizon. By contrast, much of the analytic literature has focused on the linear-quadratic infinite horizon problem, for which closed-form solutions are easy to derive and offer convenient interpretation. This paper examines the extent to which the imposed finite time horizon distorts the optimal policy. The authors compare the effects on the reputational time inconsistent solution with those on time consistent strategies using both a large nonlinear consistent expectations model and a compact linearized version. Copyright 1995 by Royal Economic Society.

Suggested Citation

  • Blake, Andrew P & Westaway, Peter F, 1995. "An Analysis of the Impact of Finite Horizons on Macroeconomic Control," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 98-116, January.
    • Handle: RePEc:oup:oxecpp:v:47:y:1995:i:1:p:98-116
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28199501%292%3A47%3A1%3C98%3AAAOTIO%3E2.0.CO%3B2-1&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caleiro, António, 2006. "On the Synchronisation of Elections -- A differential Games Approach," EconStor Preprints 142775, ZBW - Leibniz Information Centre for Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:47:y:1995:i:1:p:98-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.