Staff Report 104

Models of Policy under Stochastic Replanning

William Roberds

Published March 1, 1986

This paper considers a policy environment in which policy is not set by a single policymaker, but by a sequence of policymaking administrations. Administration turnover is determined by a simple random process. The consequences of administration turnover are traced through for two versions of a linear rational expectations model, and numerical simulations of various policy environments are presented.

Published In: International Economic Review (Vol. 28, No. 3, October 1987, pp. 731-755)

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