Designing Efficient Subsidy Policies in a Regional Economy: A Multicriteria Decision-Making (MCDM)-Computable General Equilibrium (CGE) Approach

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dc.contributor.authorAndré García, Francisco Javier
dc.contributor.authorCardenete, M. Alejandro
dc.date.accessioned2023-06-20T04:18:31Z
dc.date.available2023-06-20T04:18:31Z
dc.date.issued2009
dc.description.abstractSince policy-makers usually pursue several conflicting objectives, policy-making can be understood as a multicriteria decision problem. Following the methodological proposal by André and Cardenete (2005) André, F. J. and Cardenete, M. A. 2005. Multicriteria Policy Making. Defining Efficient Policies in a General Equilibrium Model, Seville: Centro de Estudios Andaluces. Working Paper No. E2005/04, multi-objective programming is used in connection with a computable general equilibrium model to represent optimal policy-making and to obtain so-called efficient policies in an application to a regional economy (Andalusia, Spain). This approach is applied to the design of subsidy policies under two different scenarios. In the first scenario, it is assumed that the government is concerned just about two objectives: ensuring the profitability of a key strategic sector and increasing overall output. Finally, the scope of the exercise is enlarged by solving a problem with seven policy objectives, including both general and sectorial objectives. It is concluded that the observed policy could have been Pareto-improved in several directions.
dc.description.abstractDado que los responsables políticos suelen buscar en general diferentes objetivos que entran en conflicto entre sí, la elaboración de políticas públicas puede entenderse como un problema de decisión multicriterio. Siguiendo la propuesta metodológica de André y Cardenete (2005), usamos programación multiobjetivo en combinación con un modelo de equilibrio general computable para representar la elaboración óptima de políticas y, en una aplicación a una economía regional (Andalucía, España), obtenemos el conjunto de las llamadas políticas eficientes. Este planteamiento se aplica al diseño de las políticas de subvenciones en dos casos diferentes. En el primer caso, suponemos que al gobierno le preocupan sólo dos objetivos: asegurar la rentabilidad de un sector estratégico clave y aumentar la producción total de la economía. Luego aumentamos el alcance del ejercicio resolviendo un problema con siete objetivos políticos, incluyendo tanto objetivos generales como sectoriales. Concluimos que la política observada podría haber sido mejorada en el sentido de Pareto en varias direcciones.
dc.description.departmentDepto. de Análisis Económico y Economía Cuantitativa
dc.description.facultyFac. de Ciencias Económicas y Empresariales
dc.description.refereedTRUE
dc.description.statuspub
dc.eprint.idhttps://eprints.ucm.es/id/eprint/39538
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dc.identifier.issn0034-3404
dc.identifier.urihttps://hdl.handle.net/20.500.14352/45152
dc.issue.number8
dc.journal.titleRegional Studies
dc.language.isoeng
dc.page.final1046
dc.page.initial1035
dc.rights.accessRightsopen access
dc.subject.jelC61
dc.subject.jelC68
dc.subject.jelD78
dc.subject.jelR13
dc.subject.keywordMulti-objective programming
dc.subject.keywordComputable general equilibrium model
dc.subject.keywordEfficient policy
dc.subject.keywordSubsidies.
dc.subject.ucmOptimización matemática
dc.subject.ucmEconomía regional
dc.titleDesigning Efficient Subsidy Policies in a Regional Economy: A Multicriteria Decision-Making (MCDM)-Computable General Equilibrium (CGE) Approach
dc.title.alternativeDiseño de políticas de subvenciones eficientes en una economía regional. Un enfoque multicriterio combinado con un modelo de equilibrio general computable
dc.typejournal article
dc.volume.number43
dspace.entity.typePublication
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relation.isAuthorOfPublication.latestForDiscoveryf0c35ff8-abed-4dd3-9388-4bd41a288ee6
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