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[position in research by subject]
"On the Solution of Optimal Control Problems as Maximization
Annals of Economic and Social Measurement, January 1974,
pdf file (1,235KB).
In this paper the problem of obtaining optimal controls for econometric
models is treated as a simple unconstrained nonlinear maximization problem.
Various maximizatioin algorithms are tested, and the results indicate that
quite large problems can be solved. For deterministic problems it appears
feasible to compute optimal controls for most econometric models
encountered in practice. Stochastic problems can also be solved by the
approach of this paper by means of stochastic simulation.
This paper proposes a method for solving optimal control problems in
econometric models that has proven to be quite useful. I have used this
method in all my optimal control work. The method is
reviewed in Chapter 10, Section 10.2, in
1984#2. It is used in
1978#3 in the process of measuring the
economic performance of policy makers.
The main model used for the applications in this paper is my
forecasting model (less the monthly housing starts sector)--
The solution method is programmed into the Fair-Parke program,
where the command is OPTC.