Multiple objective policy analysis: A factor analysis and tradeoff approach applied to the agricultural sector of the Dominican Republic

Abstract

The technique of factor analysis is applied to a situation in which result data from multiple objective policy analysis need to be reduced to a subset of information for policy makers. Use of factor analysis in this context is developed in some detail, and the process is applied to results of pricing policy simulations from a model of the agricultural sector of the Dominican Republic. It is concluded that factor analysis can be a useful first step for the analyst to determine the relationships among groups of variables. The technique also aids the process of data reduction to allow graphical presentation of tradeoffs. © 1984.