Modeling and control of national and international economies

Optimal control theory has been applied to many fields of science, but much less to economics, especially as far as problems of economic policy are concerned. In this paper, we show some possibilities of applying the control-theoretic approach to economic policy problems. We desribe optimum control and dynamic game algorithms developed for such problems and illustrate how they can be used to obtain insights into macroeconomic policy problems using the Austrian economy as an example.