ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
Goal programming (GP) is designed to resolve allocation problems with conflicting goals. Both goals and constraints are incorporated in the allocational decision, and the objective function is stated in a way that, upon solution, yields a result “as close as possible” to the priority-weighted goals. The present paper applies GP methodology to the investment decision of dual-purpose funds (DPFs), that are required by law to pursue allocational decisions with potentially conflicting objectives. It provides an empirical demonstration that DPF managers could have improved their investment selection and subsequent performance by the use of GP methodology. Finally the paper stresses the importance of sensitivity analysis to improve both the goal-ranking and target-selection aspects of the methodology and provides a limited but illuminating empirical demonstration of post-optimality analysis.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.1979.tb00047.x
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