Forward-looking variables in deterministic control

A Classification System for Economic Stochastic Control Models

“…This was followed by a number of papers that dealt with forward variables in the optimal policy context viz Oudiz and Sachs (1985), Backus and Driffill (1986), Levine and Currie (1987) and Pearlman, Currie and Levine (1986). 13 We have done a series of papers on models with forward variables starting with deterministic models in Amman and Kendrick (1996), then moving to models with additive noise terms (1999a) and finally optimal feedback with expectations (2000). For a recent paper using handcrafted rules in models with forward variables see Levin, Wieland and Williams (2003).…”