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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: The role of capital in economic development / Maurice Allais, Ecole Nationale Supérieure de Mines Paris - France

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 733 Thus. in this study, G.N.P. is equal to the sum of national income R and of primary income Re. These results may seem to be somewhat disconcerting at first sight, but it will become clear after some reflection that they are more natural than those which follow from the adop- tion of the rather arbitrary concepts usually applied in national accounting. If, using the usual conventions, amortisation turns out to he only of the order of 20%, of consumed national income, the reason is once again that standard systems only allow for the amortization of goods whose life expectancy exceeds one year, or even several years, while all the services invested in a short- period process are not brought into the books as such but are considered as fungible goods. The example of the Martin furnace has been given already, and a multitude of others could be added to it. Thus, outlays corresponding to certain preparatory work in mining under- rakings, those corresponding to a wide variety of agricultural activities, or again a great deal of the maintenance work done in various sectors, for example lorry repair, are considered as operating expenses. Similarly, the work of the grocer’s boy who stocks sardine cans on a shelf is an investment, but it is not counted as such. [n the same way, a window cleaner’s activity represents an investment, and the only reason it is brought in as an operating expense is that this facilitates the accounting. Under the formulation which I have given, all that which is not immediately consumed is investment. Thus, the service rendered by a waiter in a restaurant as he nears the client’s table is incorporated in the capital value of that semi-finished good, the dish to be served. This incor- porated capital will have been amortized when the customer has completed his repast; but in the conventional evaluation of capital it is not considered as an investment, nor is any account taken of it in the usual estimation of G.N.P. 11] Allais - pag. 37

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