Economic Policy Making of Development Plans in the Framework of an Optimal Control Model

oleh: Abbas Shakeri, Teymoor Mohammadi, Yooshea Moosalou

Format: Article
Diterbitkan: Allameh Tabataba'i University Press 2007-03-01

Deskripsi

In this paper, we designed the optimal trajectory of state and control variables of the Iran's economy. The scope of our research has been the second, the third and the forth economic Five-Year Development Plans. First, we have determined the optimal values of the variables using our previously designed macroeconomic model in the context of Optimal Control Theory. The primary results indicate the fact that some of planned targets of the values of economic variables are in contradiction to each other, so they are not accessible. Then, we introduced different scenarios to analyze the sensitivity of the targets to the values of policy variables. One of the most important scenarios for supplying money in the Iran's economy is choosing a constant growth rate by a prudent policy decision.