Study week on the econometric approach to development planning

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Monograph

Identifikator:: 1824422792

URN:: urn:nbn:de:zbw-retromon-217476

Document type:: Monograph

Title:: Study week on the econometric approach to development planning

Place of publication:: Amsterdam [u.a.]

Publisher:: North-Holland Publ. Co. [u.a.]

Year of publication:: 1965

Scope:: XLVII, 1259 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Econometric analysis for assessing the efficacy of public investment / R. Dorman, Harvard University - Cambridge, Mass. - U.S.A.

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC. Ll also involves certain external diseconomies because of its impact on air and water pollution. But these are all so conjectural and so minor in comparison with the directly measurable consequences of an investment in a steel plant that it is best to ignore them and to analyze a steel plant by a straightforward benefit-cost analysis or, much the same thing, a capital budgeting analysis. In this way we could ascertain whether the prospective output was valued highly enough to justify the required expenditures. The question about time horizons and time periods seems to be very closely related to Professor KooPMANS’ question. The answer lies in the choice of an appropriate rate of time preference which will allow us to evaluate consequences that accrue at different times whether they be expenditures, which normally occur early in the life of a project, or beneficial outputs which normally accrue over a very long period of time. The shadow price idea is simply a device for placing comparative values on consequences which occur on different dates. They express the importance of targets as well as the time periods over which they are realized and are not separ- able in concept from social targets to be attained by public in- vestment undertakings. MAHALANOBIS [ agree entirely with what Professor DORFMAN had said; certair. value judgments have to be made in some way or other by policy makers. In using econometric models sub-optimization is also ne- cessary. The advantage of a complete aggregate model is that we may be able to reach some of the special decisions when these are not conflicting. But in making calculations for optimization even in the case of a particular project, it seems to me that there will be much gain in objectivity in choosing the shadow price if we set up certain targets which belong to the whole of the national economv over a given period of time Dorfman - pag. 3

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