Asset/liability modeling goes beyond traditional, asset-only analysis of the asset allocation decision.

It reflects the extent in which an individual perceives that outcome allocation decisions have been fairly made.

It attempts to predict behaviour with respect to price, output and resource allocation decisions.

The allocation decisions are often static in temporal and spatial dimensions, meaning that they are valid for extended periods of time (usually decades) and for large geographical regions (country wide).

Except for possible remote and primitive communities, all modern societies use price systems to allocate resources, although price systems are not used exclusively for all resource allocation decisions.