McKibbin Warwick J. author Roubini Nouriel author Sachs Jeffrey D. author Columbia University. Earth Institute Columbia University. Economics Columbia University. International and Public Affairs Columbia University. Health Policy and Management Columbia University. Earth Institute originator text Working papers Cambridge, Mass. National Bureau of Economic Research 1987 English The goal of this paper is to study the problem of optimal dynamic policy formulation with competing political parties. We study a general class of problems, in which the two competing political parties have quadratic intertemporal objective functions, and in which the economy has a linear structure and a multidimensional state space. For the general linear quadratic problem we develop a numerical dynamic programming algorithm to solve for optimal policies of each party taking into account the party's objectives; the structure of the economy; the probability of future election results; and the objectives of the other political party. Political science Economic theory 2213 http://hdl.handle.net/10022/AC:P:8241 NNC NNC 2009-09-29 14:31:09 -0400 2012-06-12 12:12:38 -0400 438 eng