OPTIMAL STABILIZATION POLICY: A NEW FORMULATION.

Finn Kydland, Edward Prescott

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

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 languageEnglish (US)
Pages (from-to)217-222
Number of pages6
Journal[No source information available]
StatePublished - 1974
Externally publishedYes

ASJC Scopus subject areas

  • Engineering(all)

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