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:: The economic framework of regional planning / Jan Tinbergen, Nederlandsche Economische Hoogeschool Rotterdam - Nederland

Collection:: Economics Books

1238 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 8. Transportation problems may play a crucial role for some national (and some international) products of a relatively heavy nature (agricultural and mining products). Here the interplay between location and costs at other locations may have to be brought in. For these products the sub-division of the economy into regions implies that we introduce prices for the same product in different regions or even that we distin- guish between alternative regions of origin for one product. The latter assumption may mean that we have, in each region, a set of price notations for the same good with different origin and at the same time implies the assumption of quality differen- ces and imperfect markets. The latter approach, though seem- ingly more complicated, may actually be simpler since it per- mits us to assume a finite elasticity of substitution between products of different origin. It also permits the assumption that the price of a good outside its region of production equals its production cost in its region plus transportation costs to the region of destination. The alternative assumption of a uniform price in each re- gion for each product implies the use of inequalities among the restrictions, usually mathematically more cumbersome to handle. 9. For the type of commodities just discussed a key must be used for the distribution, by the buyers, of total needs over the conceivable regions of origin. These needs, to be indicated as disappearance, equal the sum total of final demand in the region (consumption plus investment), possible exports to fo- reign countries and inputs used in the region by other sectors. This disappearance itself originates from production within the region and imports from other regions (including, possibly, fo- reign countries). In loose terms, it will be bought wherever it is cheapest, taking into account transportation. More accura- cely the key of distribution must be formalized and two altern- ative keys have been discussed elsewhere [1]. The remarks ‘181 Tinbergen - pag. 6

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