On a Quantitative Definition of Affordability

Abstract

This paper introduces a definition of affordability based on the microeconomic theory of the consumer. We replace utility maximization with effectiveness maximization and discuss our conceptualization in terms of a cost-effectiveness framework. We convert our original ideas into a more useful degree (amount) of affordability (i.e., we ask not "Is it affordable"? but "How affordable is it"?). This allows us to attach meaning to, and interest in, the concept of an affordability index? or the measurement of the degree of affordability.

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Document Details

Document Type
Technical Report
Publication Date
Apr 30, 2011
Accession Number
ADA544198

Entities

People

  • Charles Lacivita
  • Kent Wall

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • C4I
  • Ground and Sea Platforms
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Business Administration
  • Command And Control
  • Commerce
  • Computer Programs
  • Cost Effectiveness
  • Costs
  • Department Of Defense
  • Governments
  • Life Cycle Costs
  • Life Cycles
  • National Security
  • Public Policy
  • Radio Equipment
  • Systems Engineering
  • Warfare

Readers

  • Economics
  • Life Cycle Cost Analysis
  • Theoretical Analysis.