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
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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
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- RERO DOC 8907
- Persistent URL
- https://folia.unifr.ch/unifr/documents/300607
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