Die deutsche Mark von 1914-1924

Bibliographic data

Monograph

Identifikator:: 1764920163

URN:: urn:nbn:de:zbw-retromon-145636

Document type:: Monograph

Title:: Die deutsche Mark von 1914-1924

Edition:: 35.-50. Tsd.

Place of publication:: Nürnberg

Publisher:: Schuster

Year of publication:: [1925]

Scope:: 64 S.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

222 PONTIFICTAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 the finished output in terms of which he defines a particular project. Should these inputs be described in terms of intermediate or only primary factors? What source of information can be tapped to de- termine prices considered as given in the proposed computations? In other words, how should the cut off point or points be determined beyond which he does not intend to push the application of maximiz- ing procedures involving explicit consideration of several well-defined alternatives. ALLAIS I want to underline only one point. It is in fact very difficult to choose the right indicative prices without very close connection with the market, without the pressure of the market. And I can give two very striking examples. The first one concerns the cal- culations of the French National Electricity Board. A few years ago the engineers were calculating projects using a very low rate of interest. When these calculations had been made they had the choice between different projects. The rate of interest chosen for the calculations was something about 3 per cent, I don’t remember exactly. Later in order to make a final choice, they used a new rate of interest of 8 per cent, as a result of general instructions issued by the Commissariat au Plan. Correspondingly, the result that each project effectively retained represented an over-investment. The final outcome of this error of principle in the calculations was a waste of resources for the French economy. This waste would have been avoided if the decisions of the Electricity Board had followed the rules of the market economy. The second example is the indicative price for coal which the Three Wise Men designated by the European Coal and Steel Com- munity in 1957 advised should be used for the energy policy of the Europe of the Six. This shadow price was 22 dollars per ton of American coal c.i.f. European port. But four years later the price was only 12 dollars. If there had been a real and reliable market, 3] Dorfman - pag. 36

Access restriction

Copyright

fullscreen: Die deutsche Mark von 1914-1924

Monograph

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation