Abstract
For a preference function U(y) to be a proper representation of the community’s well being, y should contain all relevant aspects of life and will therefore be of high dimension. In any analysis to support policy proposals this high dimensionality needs to be reduced to an operational setting. A policy problem is therefore studied in a projection of U(y) into some explicitly defined variables. In this paper it is shown how preference functions can be based upon interviews of political parties. This helps to highlight some consequences often ignored.
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© 1991 Springer-Verlag Berlin Heidelberg
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Merkies, A.H.Q.M., Hofkes, M.W. (1991). Operationalizing a Macro-Economic Preference Function. In: Gruber, J. (eds) Econometric Decision Models. Lecture Notes in Economics and Mathematical Systems, vol 366. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-51675-7_13
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DOI: https://doi.org/10.1007/978-3-642-51675-7_13
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