Preprint

The therapy to shock therapy: optimal dynamical policies for transition economies

  • Challet, Damien Institute for Scientifc Interchange (ISI), Torino, Italy - Physics department, University of Fribourg, Switzerland
  • Solomon, Sorin The Racah Institute of Physics, Hebrew University, Jerusalem, Israel - Institute for Scientifc Interchange (ISI), Torino, Italy
  • Yaari, Gur The Racah Institute of Physics, Hebrew University, Jerusalem, Israel - Institute for Scientifc Interchange (ISI), Torino, Italy
    2008
English We show that a simple model reproduces very closely the evolution of the GDP in constant dollars of many countries during the times of recession and recovery. A theoretical analysis illustrates how an optimal dynamical policy reduces both recession duration and severity, and increases the value of GDP at all times. We propose a criterion to distinguish a posteriori a dynamical policy from a static one.
Faculty
Faculté des sciences et de médecine
Department
Département de Physique
Language
  • English
Classification
Physics
License
License undefined
Identifiers
  • RERO DOC 8907
Persistent URL
https://folia.unifr.ch/unifr/documents/300607
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