Controlling national income and public debt via fiscal policy. A model matching algorithmic approach

Abstract

Our aim in this paper is to present an application of the exact model matching approach to a linear, discrete macroeconomic model with delays. The solution is based on algebraic methods and the development, in computer algebra software, of appropriate symbolic algorithms that produce a class of feedback laws as a solution. These feedback laws constitute a class of potential policies that the policymaker can implement on the system and modify its dynamics so that predetermined, desired targets are met. In order to see the effects of different policies, we implement two feedback laws on the system at hand. Refs 9. Table 1.