Ragnar Frisch was a leading advocate of national economic planning in the service of the welfare state. His Nobel lecture (1970) stressed the value of interactions between economists and politicians in arriving at politically acceptable and economically viable national plans. A major theme of his lecture was that economists should act in the public interest and in so doing should recognize the diversity of policy objectives advocated by different groups in democratic societies. He made the important distinction between maximizing the mythical welfare function assumed in classical welfare economics and in the classic policy analysis of Tinbergen (1956) and reconciling and satisfying the diverse perceptions and values held by citizens of modern states. He stressed the role of economists in informing policy-makers and the general public about the relevant economic trade-offs and the costs of alternative policies.

Frisch's faith in the power of economics to supply the information required to make informed public choices seems wildly optimistic today, yet his message remains relevant. Economists are still asked to inform the general public and policy-makers about the likely consequences of alternative social programs. Social-welfare functions do not govern decision making in any democratic society, and it is clear that a variety of criteria are relevant for evaluating alternative policies in democratic societies composed of individuals and groups with diverse values and perspectives.