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National welfare versus ‘economic independence’: The case of iran
Author(s) -
Razavi Hossein
Publication year - 1983
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.4660040304
Subject(s) - welfare , independence (probability theory) , politics , maximization , economics , economic integration , economic welfare , public economics , international economics , microeconomics , political science , mathematics , market economy , law , statistics
A linear‐quadratic welfare maximization model is formulated to study the trade‐offs between the political desirability and the economic cost of reducing foreign trade. The model is then applied to the case of Iran and a dynamic programming algorithm is employed to calculate the numerical values of the optimal trade policies. The effects of various political attitudes on the trade policies are discussed.