Towards constructing an objective function for Austrian fiscal policy-making: An optimum control approach

Autor(en): Neck, R
Karbuz, S
Herausgeber: Tangian, A
Gruber, J
Stichwörter: Business & Economics; Economics; fiscal policy; interactive methods; Mathematical Methods In Social Sciences; Mathematics; Mathematics, Interdisciplinary Applications; optimal control; quadratic objective function; quantitative economic policy-making; respecification; Social Sciences, Mathematical Methods
Erscheinungsdatum: 1997
Herausgeber: SPRINGER-VERLAG BERLIN
Journal: CONSTRUCTING SCALAR-VALUED OBJECTIVE FUNCTIONS
LECTURE NOTES IN ECONOMICS AND MATHEMATICAL SYSTEMS
Volumen: 453
Startseite: 227
Seitenende: 252
Zusammenfassung: 
In this paper, we use an interactive approach based on imaginary interviews to illustrate how an intertemporal objective function of a hypothetical fiscal policy-maker in Austria could be constructed. First, a quadratic objective function with arbitrary parameters is optimized subject to an econometric model of the Austrian economy, using the optimum control algorithm OPTCON. Next, several alternative optimization runs are performed, with systematic variations of the parameters of the objective function, namely the planning horizon, the rate of discount, the weights and the desired values of the objective variables. These experiments show whether and how the initially assumed objective function has to be respecified to obtain results which agree with the preferences of the hypothetical policy-maker. The ultimate goal is the development of a decision support system for fiscal policy-makers.
Beschreibung: 
3rd International Conference on Econometric Decision Models - Constructing Scalar-Valued Objective Functions, UNIV HAGEN, HAAGEN, GERMANY, SEP 05-08, 1995
ISBN: 9783540630616
ISSN: 00758442

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