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- W2649463153 abstract "Optimal policies for macroeconomic models often tend to exhibit violent fluctuations which make them less desirable from a practical point of view. A possible remedy would be to penalize the fluctuations by including a penalty term in the objective function. In this paper we take a different approach and specify bounds for the rate of change of the controls. First some theoretical considerations are given and then an empirical analysis is carried out with the CLEAR model of Canada. Specifically, we investigate how much of the optimal welfare gain which is sacrificed by bounds of different tightness. The usefulness of the approach is discussed." @default.
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- W2649463153 date "1986-06-01" @default.
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- W2649463153 title "On the Effects of Smoothing Optimal Economic Policies" @default.
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- W2649463153 doi "https://doi.org/10.1016/s1474-6670(17)59708-6" @default.
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