Tinbergen and Theil Meet Nash: Controllability in Policy Games
Giovanni Di Bartolomeo, Nicola Acocella
Policy games,policy ineffectiveness,static controllability,Nash equilibrium existence
Economy and Society
This paper generalizes the classical theory of economic policy to a static LQ-strategic context between n players. We show how this generalized version of controllability can profitably be used to deal with policy ineffectiveness issues and Nash equilibrium existence.