Cognitive modeling and multi criteria decision making in macroeconomic analysis

Abstract

Decision making in macroeconomics belongs to the class of ill-structured tasks with strong external factors interdependence, a limited number of management tools and experts groups' subjectivity. This paper suggests a technique of macroeconomic analysis which includes methods of cognitive modeling for formalizing a problem situation and scenario generation as a basis of the typical multicriteria decision making task. In turn, for solving this task is suggested a method based on measuring the distance to the 'ideal' solution with determining importance of criteria by finding objective, common component of all values measured by experts groups. For extracting this 'commonality' means of factor analysis are used. Such an approach allows separating of the objective part in experts' value from a subjective one, while the technique at whole provides formalization of macroeconomic problems and substantiation of decision-making in macroeconomics.

Keywords

• cognitive modeling
• combined strategies
• decision making
• ill-structured problems
• macroeconomic analysis
• method of finding generality
• multicriteriality