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Subjective Versus Objective Economic Measures, A fuzzy logic exercise

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  • António Caleiro

    (Department of Economics, University of Évora)

Abstract

It is rather evident that there is much more (statistical) information about objective aggregates, such as inflation, output or unemployment than that concerning subjective aggregates, such as well-being, satisfaction, confidence or even expectations. Due to its characteristics, fuzzy logic can and should indeed be used to understand how some of those subjective measures can be approximated by objective ones. This task is accomplished in the paper by the use of Portuguese data on consumer confidence - the subjective economic measure - and on the unemployment rate - the objective economic measure -. The results clearly indicate that to be a worthwhile exercise as the clear importance of unemployment on confidence is only revealed by the fuzzy logic approximation.

Suggested Citation

  • António Caleiro, 2003. "Subjective Versus Objective Economic Measures, A fuzzy logic exercise," Economics Working Papers 11_2003, University of Évora, Department of Economics (Portugal).
    • Handle: RePEc:evo:wpecon:11_2003
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    File URL: http://hdl.handle.net/10174/8397
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    References listed on IDEAS

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    Cited by:

    1. António Caleiro, 2005. "How is Confidence Related to Unemployment in Europe? A fuzzy logic answer," Economics Working Papers 1_2005, University of Évora, Department of Economics (Portugal).

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    More about this item

    Keywords

    Confidence; Fuzzy Logic; Objective Measures; Subjective Measures;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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