An MCDA Approach for Personal Financial Planning

Oliver Braun () and Marco Spohn
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Oliver Braun: Trier University of Applied Sciences, Environmental Campus Birkenfeld
Marco Spohn: Trier University of Applied Sciences, Environmental Campus Birkenfeld

Chapter Chapter 18 in Evaluation and Decision Models with Multiple Criteria, 2015, pp 533-562 from Springer

Abstract: Abstract Personal Financial Planning (PFP) is the preparation of target-oriented decisions concerning assets, incomes, and expenses. As people have different preferences for different financial goals, and the goals are flexible, PFP is a Multicriteria Decision Analysis (MCDA) problem that is often addressed by trial calculations under different scenarios. We provide an MCDA model to derive a financial plan that maximizes the value of the expenses for a decision maker with respect to height, time, and type preferences. Specifically, we show how the problem can be solved through a mixed integer programming approach where the weights for the mathematical program are determined with the help of the Analytic Hierarchy Process.

Keywords: Decision Maker; Analytic Hierarchy Process; Mixed Integer Linear Programming; Quality Function Deployment; Strategic Objective (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:ihichp:978-3-662-46816-6_18

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DOI: 10.1007/978-3-662-46816-6_18

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