Feedback policy rules for government spending: an algorithmic approach

Ilias Kostarakos and Stelios Kotsios

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.

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Year of publication:	2017
Authors:	Kostarakos, Ilias ; Kotsios, Stelios
Published in:	Journal of economic structures : JES; the official journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS). - Heidelberg : SpringerOpen, ISSN 2193-2409, ZDB-ID 2679924-8. - Vol. 6.2017, 5, p. 1-10
Subject:	Fiscal policy \| Public debt \| Linear feedback control \| Algorithmic control \| Finanzpolitik \| Öffentliche Schulden \| Theorie \| Theory \| Öffentliche Ausgaben \| Public expenditure \| Algorithmus \| Algorithm \| Regelbindung versus Diskretion \| Rules versus discretion

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1186/s40008-017-0065-z [DOI] hdl:10419/194943 [Handle]
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011664026