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:: Spatial organization and regional planning: Some hypotheses for econometric analysis / Walter Isard, Department of regional Science - University of Pennsylvania Philadelphia, Penn. - U.S.A.

Collection:: Economics Books

SEMAINE D’ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETc. 1019 tion of the degree of spatial centralization-as suggested by curve M in Figure 5? (*). However, if one postulates that at each local and regional node there exists at least some supply of zero-cost decision-making labor, as is frequently the case in the literature on socialist economics and centralized plan- ning, might the relevant function be represented by cur- ve N? (17) Can the spread between curves M and N at any point along the horizontal axis be taken to represent the cost savings from zero-priced computing and beneficiating resources for the corresponding degree of spatial centralization? Further, if it is accepted that local decision makers have greater local visibility, and therefore need to collect less information, can we hypothesize that their need for computation and data pro- cessing is accordingly smaller? Would the dotted curve Q be relevant rather than curve N? Cost component c): In analyzing the costs of transmitting information, is it valid to consider only two elements: terminal costs (inclusive of coding and decoding costs) and operating or « line-haul » costs which are usually a direct function of inter- vening distance? Of course, both these costs should be taken to cover maintenance expenses and fixed charges on invest- ment in communication (transportation) channels (!¥). When operating costs rise less than proportionately with distance, can the function relating transmission cost per standard unit ('*) After a point, it may also be hypothesized that scale diseconomies arise because of congestion, overload of facilities, etc. (') An advantage typically claimed for decentralized planning of the economy is a personnel saving because the managers at each local node are « a ready-made computational staff and all of them are required in any case to be employed for the tasks of managerial supervision. In their remaining time they simultaneously perform all the tasks of computing each revised set of production decisions except for the computation of prices (which is performed by the central agency). In the centralized so- lution, on the other hand, the entire burden of these computational tasks falls on the central agency, and the agency must hire a staff especially for this purpose... » (T. MARSCHAK, op. cit., p. 400). (*) Parallels to these cost elements mav be taken to exist when inform ation is transported bv individuals 12 | Isard - pag. 17

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