Implications of parameter selection in dynamic multiobjective models in economics and finance

Abstract

Time is a key variable in the field of economics and finance. However, most of the classic approaches to economic problems are static. In this pa- per, we first review the existing literature on the use of multiobjective techniques to control dynamic systems within the area of economics and finance. We also tackle the question of which measure should we use to evaluate alternative solutions. To this end, we elaborate on the meaning added by the selection of a parameter in a family of distance functions used to evaluate alternative solutions. Keywords: time, dynamic systems, economics, distance function, review.