FISCAL POLICY, MATHEMATICAL PROGRAMMING AND TWO-PERSON ZERO-SUM GAME THEORY.
PRINCETON UNIV N J ECONOMETRIC RESEARCH PROGRAM
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Various techniques of mathematical programming are applied to a simple fiscal policy problem. First the problem is stated as a linear program. Then the decomposition principle is applied to a decentralized version of the fiscal policy problem. The equivalence of a linear programming formulation of the problem and the formulation as a two-person zero-sum game is shown. Finally, the rate of change of the value of the game is investigated. The linear program is cast into dynamic programming formulation in an appendix. Eventually the coefficients of the constraints are assumed to be stochastic. Author
- Economics and Cost Analysis
- Operations Research