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 ECONOMETRIQUE ETC. 189 costs, but particularly the benefits, are far more difficult to ascertain and measure than in the case of private investments. This follows from the very natures of the firm and the.govern- ment and from the kinds of enterprise that a government is likely to engage in in a mixed economy. When a firm contemplates an investment it will be con- cerned very predominantly with the increase in the salable product or the decrease in the operating costs that will result from it. Both of these are readily expressible in monetary terms and the conversion from physical units to economic value is relatively easy because prices for the commodities at issue can be obtained, with some degree of haziness and extrapolation to be sure, from the free markets on which those commodities are traded. A government’s interests and the results in expects from its investments are quite different. Indeed, the greater the extent to which the kind of appraisal that a firm uses is ade- quate, the more likely is the government of a mixed economy to leave the undertaking to the private sector. The kinds of results in which a government is interested can be outlined. as follows : 1. Frequently government enterprises do produce salable products, comparable to those of private enterprises. This is likely to be the case where the product is a « natural mono- poly » or is particularly important to the health and safety of the community or to the operation of the government itself. 2. In recent years, especially, governments have entered fields characterized by significant economies of scale, to gain which requires larger commitments of capital than private indi- viduals are able or willing to mobilize. 3. The government is likely to undertake the production of goods for which there is a marked discrepancy between mar- ket price and social value, or for which“a private enterprise 51 Dorfman - pag. 3

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