Correani, Luca; Dio, Fabio Di; Patrì, Stefano - Dipartimento di Metodi e modelli per l'economia, il …
This article derives optimal fiscal rules within a stochastic model of Keynesian type in the context of Poole (1970) analysis. By using optimal control theory and applying the Hamilton-Jacoby Bellman equation, we extend the original Poole results concerning the output stabilization properties of...