Study week on the econometric approach to development planning

Bibliographic data

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.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: The analysis of economic systems / Richard Stone, Cambridge University - Cambridge - Great Britain

Collection:: Economics Books

PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 2. STEADY STATES AND TRANSIENT STATES In planning for the future, we should recognise, first, that what we do now affects to some extent what we can do in the future and, second, that what we shall want to do in the future, and what facilities we shall have to do it with, becomes less and less clear as we try to imagine times which are more and more remote. We cannot work forward into the future without setting a target and we cannot derive this target from the remote future because we have no information about it. Accordingly, we have set up our model of growth in two parts, and our solution comes from iterating between them. One part is concerned with the rates at which the outputs of different products might grow after a transitional period ending, say, in 1970; this is the long-run or steady-state model. The other part is concerned with the problem of adapting the economy during the transitional period to meet the initial conditions of the steady state of growth; this is the short-run or transient model. The structure of these two models and the relationship be- tween them can best be seen by concentrating on essentials and leaving all detail for subsequent treatment. The two structures are shown in diagram 3 below. Each structure involves a building block for each period, containing five components: assets, labour, output, investment and consumption. We can describe the relationships between these five components in two ways. On the one hand we may say that given amounts of assets and of labour enable us to produce a certain amount of final output which will be absorb- ed either by investment or by consumption: this is the order that appears in the transient model. On the other hand we may say that investment and consumption add up to final out- put and that, given the labour available, the production of this output will require certain quantities of assets: this is the order [1] Stone - pag. 28

Access restriction

Copyright

fullscreen: Study week on the econometric approach to development planning

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation