Optimal Economic Stabilization Policy: Linear Goal-Programming Models.

Abstract : A class of linear goal-programming models for optimal economic stabilization policy is presented and it is shown that it retains and extends the most interesting features of 'quadratic' or 'piecewise quadratic' models, while providing easier computation and more flexibility with respect to number of variables, additional conditions and time horizon choice. The iterative non-linear processes employed heretofore are replaced by single linear programming computations. Further extensions serve to model simultaneous time-horizon and interaction effect determinations and also evaluate the nature of the difficulties in these and related desiderata. (Author)