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. Lis insists that «it would be useful to attach a time period for public investments ». Of course it would, and I fail to see why he feels it so necessary to insist on this. Every consequence of a public investment occurs at some date. The importance of that conse- quence naturally depends on the date or dates at which it occurs. The time period and time sequence is incorporated in the analysis by means of the shadow prices which are different for every date at which something can happen. An event which occurs 10 years hence will receive less weight in an analysis than one that occurs 5 years hence if the shadow prices for events 10 years in the future are lower than those for events 5 years in the future, and this wil be the case whenever there is a positive rate of time discount. SCHNEIDER When we consider an economic system which is mainly based on the principles of a market economy with a public sector, then I don’t see that the problem of shadow prices has so much ‘m- portance as it has for example in developing countrie- « ‘- - centrallv planned economic swvstem DORFMAN It is very helpful of you to remind us that where we have marke: prices to guide us we have much less need for shadow prices. In fact, we may have no need at all. But when public investments are being considered, we do not have market prices for all the goods and services that concern us. In particular we do not have market prices for events that will occur in the future or for the external economies and diseconomies that will result from the contemplated investment. Shadow prices are required for all the consequences of an invest ment undertaking that are not valued in the ordinary markets y Dorfman - pag. 3;

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