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

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

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

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

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Document type:: Monograph

Structure type:: Chapter

Title:: Some observations on countercyclical fiscal policy and its effects on economic growth / Trygve Haavelmo, Universitetet i Oslo - Oslo - Norge

Collection:: Economics Books

Document type:: Monograph

Structure type:: Chapter

Title:: Some observations on countercyclical fiscal policy and its effects on economic growth / Trygve Haavelmo, Universitetet i Oslo - Oslo - Norge

Collection:: Economics Books

SEMAINE D'ÉTUDE SUR LE ROLE DE L'ANALYSE ECONOMETRIQUE ETC. 515 for complications in this respect is the fact that the whole time path of the variables will be changed as a result of a change in the characteristic parameters of the model. There are at least two reasons why we do not want to follow ap this analysis of inducement any further in the present context. One reason is that the theoretical foundation of the idea of induced investment is in itself rather dubious. Thus, as 1 have tried to show elsewhere (!), it is not easy to justify a systematic tendency to induced investment by any « classical » principle of producers’ behavior in maximizing profits. But ‘he second and more important reason is that the possibility of large-scale induced investment is in fact irrelevant to the main argument to which this paper is devoted. This last sta-:ement may need a little further explanation. The main line of argument of the « new » and « radical » principles of fiscal policy for full employment has, as far as [ have understood it, been a) that the government should not be afraid to accept very large budget deficits if necessary, b) that in certain periods very large budget deficits will actually be required, and c) that if such a « radical » policy is adhered to, the government has done its main job as an economic policv maker. Now, if this is a correct interpretation of the line of thinking, it would seem to me to be rather strange to argue that induced investment is so important that only modest variations in the budget deficit would be required. Such an assumption is also contradicted by facts. Experience has shown that private investment may be subject to large variations which cannot easily be explained by any initial change in effective demand for consumer goods. The idea that a « radical » fiscal policy for full employment would not in fact need to operate with very large budget de-(!) Cf. my book on A Study in the Theory of Investment. University ol Chicago Press. 1960 Haavelmo - pag. 13

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