This chapter discusses the widely used control model in economics, the Linear Quadratic Control Model (LQCM).The major advantage of LQCM is that it has, in general, a unique analytical solution. However, this is not necessarily true when dealing with forward-looking behavior or stochastic...

This chapter discusses a common set of methods that are not currently in wide use in either microeconomics or macroeconomics, but constitute a core of the methodology for models in many different sectors of the economy. The chapter also provides an overview of the varieties of sectoral models,...