Subjective Versus Objective Economic Measures, A fuzzy logic exercise
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.
|Date of creation:||2003|
|Contact details of provider:|| Postal: Largo dos Colegiais 2, 7000 - 803ÉVORA|
Phone: + 351 266 74 08 94
Fax: + 351 266 74 24 94
Web page: http://www.decon.uevora.pt
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. S. L. Chang & H. O. Stekler, 1977. "Fuzziness in Economic Systems, Its Modeling and Control," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 6, number 2, pages 165-174 National Bureau of Economic Research, Inc.
- James E. West & Bruce Linster, 2003. "The Evolution of Fuzzy Rules as Strategies in Two-Player Games," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 705-717, January.
- Robert Draeseke & David E. A. Giles, 1999. "A Fuzzy Logic Approach to Modelling the Underground Economy," Econometrics Working Papers 9909, Department of Economics, University of Victoria.
- Sargent, Thomas J., 1993. "Bounded Rationality in Macroeconomics: The Arne Ryde Memorial Lectures," OUP Catalogue, Oxford University Press, number 9780198288695.
- William D. Nordhaus, 1975. "The Political Business Cycle," Review of Economic Studies, Oxford University Press, vol. 42(2), pages 169-190.
- Carlo Bagnoli & Halbert C. Smith, 1998. "The Theory of Fuzzy Logic and its Application to Real Estate Valuation," Journal of Real Estate Research, American Real Estate Society, vol. 16(2), pages 169-200.
When requesting a correction, please mention this item's handle: RePEc:evo:wpecon:11_2003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Aurora Murcho Galego)
If references are entirely missing, you can add them using this form.