Article thumbnail

Comparison of Optimal Control Solutions in a Labor Market Model

By Gareth D Leeves and Ric D Herbert

Abstract

In this paper a variety of computational optimal control techniques are compared on a complicated nonlinear discrete-time model. We use a labor market model with the objective of trying to obtain an unemployment rate objective, using an active labor market program as a control. In reality the control is constrained as only limited proportion of the unemployment can attend the labor market program. A variety of computational optimal control techniques are applied. The techniques include numerically linearizing the model and using standard linear quadratic optimal control and applying this to the nonlinear model; model based predictive control; and stacking the model over time and using optimisation techniquesLabour market policies; Optimal Control.

OAI identifier:

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles

Citations

  1. (2003). Labour market policies and long-term unemployment in a ┬░ow model of the Australian labour market.
  2. (2003). Model Based Predictive Control: A Practical Approach.
  3. (1998). Observers and Macroeconomic Systems.