Stochastic Optimization and Economic Models

This book presents the main applied aspects of shas­ tic optimization in economic models. Shastic processes and control theory are used under optimization to illustrate the various economic implications of optimal decision rules. Unlike econometrics which deals with estimation, this book emphasizes the decision-theoretic basis of uncertainty specified by the shastic point of view. Methods of ap­ plied shastic control using shastic processes have now reached an exciting phase, where several ...