Feedback policy rules for government spending: An algorithmic approach

Kostarakos, Ilias; Kotsios, Stelios

doi:doi:10.1186/s40008-017-0065-z

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/194943

Title:

Feedback policy rules for government spending: An algorithmic approach

Authors:

Kostarakos, Ilias
Kotsios, Stelios

Year of Publication:

2017

Citation:

[Journal:] Journal of Economic Structures [ISSN:] 2193-2409 [Volume:] 6 [Issue:] 5 [Publisher:] Springer [Place:] Heidelberg [Year:] 2017 [Pages:] 1-10

Publisher:

Springer, Heidelberg

Abstract:

We present an algorithmic approach for the design of fiscal policy rules. In particular, using algorithmic feedback control techniques, we design linear feedback policy rules such that predetermined target levels for GDP and public debt are simultaneously, exactly tracked. We run a number of simulations in order to examine the effects of different policy response rates and the overall effectiveness of the proposed methodology.

Subjects:

Fiscal policy
Public debt
Linear feedback control
Algorithmic control

Persistent Identifier of the first edition:

doi:10.1186/s40008-017-0065-z

Creative Commons License: