In this paper a continuous time stochastic control model for an optimal choice of the public expenditure and taxation policy is developed in order to obtain an optimal level of welfare. We define welfare a situation in which the current income is as closed as possible to its full employment level. The mathematical tool we use is the Hamilton-Jacoby-Bellman equation applied to the minimization of an integral operator whose variable is described by a controlled stochastic differential equation.
A Stochastic Model for an Optimal Choice of the Public Expenditure and Fiscal Policy / Patri', Stefano. - ELETTRONICO. - (2008). (Intervento presentato al convegno X Italian-Spanish Congress of Financial and Actuarial Mathematics (ISC08) tenutosi a Cagliari nel giugno 2008).
A Stochastic Model for an Optimal Choice of the Public Expenditure and Fiscal Policy
PATRI', Stefano
2008
Abstract
In this paper a continuous time stochastic control model for an optimal choice of the public expenditure and taxation policy is developed in order to obtain an optimal level of welfare. We define welfare a situation in which the current income is as closed as possible to its full employment level. The mathematical tool we use is the Hamilton-Jacoby-Bellman equation applied to the minimization of an integral operator whose variable is described by a controlled stochastic differential equation.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
