Observers and Macroeconomic Systems: Computation of Policy Trajectories with Separate Model Based Control / Edition 1

by Ric D. Herbert

Overview

Observers and Macroeconomic Systems is concerned with the computational aspects of using a control-theoretic approach to the analysis of dynamic macroeconomic systems. The focus is on using a separate model for the development of the control policies. In particular, it uses the observer-based approach whereby the separate model learns to behave in a similar manner to the economic system through output-injections.
The book shows how this approach can be used to learn the forward-looking behaviour of economic actors which is a distinguishing feature of dynamic macroeconomic models. It also shows how it can be used in conjunction with low-order models to undertake policy analysis with a large practical econometric model. This overcomes some of the computational problems arising from using just the large econometric models to compute optimal policy trajectories.
The work also develops visual simulation software tools that can be used for policy analysis with dynamic macroeconomic systems.

Product Details

ISBN-13:	9780792382393
Publisher:	Springer US
Publication date:	10/31/1998
Series:	Advances in Computational Economics , #8
Edition description:	1998
Pages:	309
Product dimensions:	6.10(w) x 9.25(h) x 0.36(d)

Table of Contents

I Linear Systems.- 1: Introduction.- 2: Observers For Linear Rational Expectations Models.- 3: Low Order Dynamic Macroeconometric Models.- 4: Control Strategies for Attaining Ramp Output.- 5: Visualisation Techniques.- II Nonlinear Systems.- 6: Optimal Control with Nonlinear Models: Recent Studies.- 7: A Practical Macroeconometric Model.- 8: Linear Observer Based Control with the Nonlinear Macro-econometric Model.- 9: Nonlinear Observers.- 10: Conclusion and Further Work.- Appendix A: Software Engineering.

Editorial Reviews

Addressing the computational aspects of using a control theoretic approach in the analysis of dynamic macroeconomic systems, this study makes use of a separate model for the development of the control policies. It emphasizes an observer-based approach in which the separate model learns to behave in a similar manner to the economic system through output-injection and shows how this approach can be used to learn the forward-looking behavior of economic actors, in conjunction with low order models, to undertake policy analysis and compute optimal policy trajectories. It also develops visual simulation software tools that can be used for policy analysis with dynamic macroeconomic systems. Double-spacing makes the tiny type marginally easier to read. Annotation c. by Book News, Inc., Portland, Or.

Booknews