Full text: Study week on the econometric approach to development planning

1024 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 
Pe 
ing firm acting as a team and confronted with the possibilities 
of either a centralized system of decision-making, or a decen- 
tralized system. (?) His resulting figures would not be in- 
consistent with the hypothesis which states that an overview 
advantage does exist, and with the more concrete hypothesis 
that states that this advantage can be roughly depicted by 
curve CC of Figure 10. [In Figure 10, curve CC indicates a 
disadvantage (a negative Figure) for any degree of spatial 
centralization less than 100%]. The present author together 
with Tung has developed another example involving the invest- 
ment by a large merchandising firm of $1 million at each of 
several h*” order nodes (?). The resulting figures are also not 
inconsistent with the hypotheses underlving curve CC of Fi- 
gure IO. 
Clearly, neither of these two examples can be said to sup- 
port in any way whatsoever any hypothesis on overview 
advantage. À considerable amount of spade work has yet to 
be done in defining concents and terms before anv empirical 
Dollars 
+10,000 
+ 6,666 
SIG. 
Al 
DEGREE OF 
20% SPATIAL 
CENTRALIZATION 
En 
“TARSCHAK, Op. cit. 
fsarp and TUNG. ob. cit., Part. II. 
121 Isard - pag. 22
	        
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