NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Dynamic Optimization in Two-Party Models

Warwick J. McKibbin, Nouriel Roubini, Jeffrey Sachs

NBER Working Paper No. 2213
Issued in April 1987
NBER Program(s):   EFG

The goal of this paper is to study the problem of optimal dynamic policy formulation with competing political parties. We study a general class of problems, in which the two competing political parties have quadratic intertemporal objective functions, and in which the economy has a linear structure and a multidimensional state space. For the general linear quadratic problem we develop a numerical dynamic programming algorithm to solve for optimal policies of each party taking into account the party's objectives; the structure of the economy ; the probability of future election results; and the objectives of the other political party.

download in pdf format
   (316 K)

download in djvu format
   (206 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2213

Users who downloaded this paper also downloaded* these:
McKibbin and Sachs w3100 The McKibbin-Sachs Global Model: Theory and Specifications
Mukerjee and Witte w3771 Measurement of Output and Quality Adjustment When Hedonics Cannot Be Used: An Illustration for the Day Care Industry
Campbell and Froot w4587 International Experiences with Securities Transaction Taxes
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us