Josef Gruber - Böcker

For some seven decades, econometrics has been almost exclusiveley dealing with constructing and applying econometric equation systems, which constitute constraints in econometric optimization models. The second major component, the scalarvalued objective function, has only in recent years attracted more attention and some progress has been made. This book is devoted to theories, models and methods for constructing scalarvalued objective functions for econometric optimization models, to their applications, and to some related topics like historical issues about pioneering contributions by Ragnar Frisch and Jan Tinbergen.

This volume contains 40 papers on econometric decision models. These are optimization models, the constraints of which consist, above all, of econometric equation systems. Based on macrodata or microdata, they are major instruments for studying economic and social policy at various levels of aggregation. The papers are arranged in 10 parts, with such topics as optimal control, multicriteria decision-making (vector optimization), constructing scalar-valued objective functions, rational expectations, models, co-integration estimation and testing, structural and sensitivity analyses, modelling of environmental and energy problems, and performance in policy analyses. Probably the most distinctive feature of this proceedings volume is that it also contains reports about several attempts to construct scalar-valued objective functions by means of economic methods.

For several decades, scholars have developed methods for solving optimization problems which emerge in economics, econometrics, operations research, and other disciplines. A considerable effort has been made to construct equations from which constraints can be derived, but surprisingly little has been done to construct the other part of optimization models: the scalar-valued objective function, the constrained maximum or minimum of which gives the optimal solution. The given volume is intended to attract attention to the problem, to present the major achievements in the field and to stimulate further research and teaching.