The paper first summarizes the current theory of policy valuation and Lucas's critique of it. The authors then formulate the problem as a game and develop a concept of an optimal policy rule. A theoretical model is developed for the analysis of the effects of alternative investment tax credit policies. This structure is then used to illustrate the determination of optimal policy. A comparison is also made with current procedures.
|Original language||English (US)|
|Number of pages||6|
|Journal||[No source information available]|
|State||Published - 1974|
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