An Approach to Solving Multiple Criteria Macroeconomic Policy Problems and an Application

In this paper we propose an approach to solving multiple criteria macroeconomic policy problems and report on an application using an existing econometric model. This approach involves the use of a mathematical programming formulation of the macroeconomic policy problem with multiple objective functions. The multiple objectives are resolved by a man-machine interactive solution strategy. This approach was implemented in order to analyze macroeconomic problems in Finland.