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Volume 52, Issue 11


Vypovídací schopnost makroekonomických agregátů při hodnocení výsledků hospodářské politiky

Kvasnička, Michal

Year: 2002   Volume: 52   Issue: 11   Pages: 647-650

Abstract: Macroeconomic policy is often evaluated solely on the basis of empirical evidence, such as observing the behavior of macroaggregates. This paper argues that this approach bears a shortcoming: the „improvement’’ of macroaggregates can be socially undesirable under certain circumstances. Thus the sole exploration of macroaggregates is not sufficient to evaluate macroeconomic policy – axiomatic economic theory must be used as well to determine whether the outcomes of macroeconomic policy are beneficial to society or not. The paper first offers a precise definition of a social welfare function (based as much as possible on micro-foundations). Then it considers the possibility that macroaggregates might not always correlate with society’s welfare.

JEL classification: D1, D6, E, E13, E52, E62, H3

Keywords: macroeconomic policy; social welfare


RePEc: n/a

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