OPTIMAL INCENTIVES FOR ECONOMIC GROWTH IN CENTRAL EUROPEAN COUNTRIES: A MICRO APPROACH

Abstract

Financial crisis of 2008 and the ongoing pandemic are continuing to have a negative impact on the economies of all countries even tough interest rates have been decreased significantly. This paper attempted to view the problem from a micro point of view to suggest more effective incentives for growth. The specific objective of the study is to determine and examine the effects of these incentives on economic growth in Central European countries.

Keywords

• optimal control theory
• incentives for economic growth
• fluctuating demand