ABSTRACT
In the preceding chapters concerning distributed lags and simultaneous equation econometric models, the values of the dependent or endogenous variables were expressed as functions of certain independent or exogenous variables (and possibly lagged values of dependent variables). From the optimal control viewpoint this classification of the variables is particularly useful. If the exogenous variables are subject to control, then by choosing values for these variables, it is possible to forecast the values of the endogenous variables using the econometric model.
