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

SEMAINE D'ETUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIQUE ETC. 
1017 
For the purposes of this paper we shall consider four basic 
cost components. The reader, of course, may wish to hypothes- 
ize a smaller or greater number of cost components, and employ 
a different set of definitions. Our four basic cost components 
are: 
a) cost of collecting information, where each node collects in- 
formation on conditions in its own tributary (jurisdictional) 
area (12); 
b) cost of processing and beneficiating information (inclusive 
of computation costs and all research costs not elsewhere 
covered): 
c¢) cost of transmitting (transporting) information from one node 
to another: 
d) cost of the time of the executive, local representative and 
other officials in reaching decisions individuallv or in con- 
ference (13). 
We now set forth, in the form of questions, some reason 
able hypotheses concerning each of these components (1) 
Cost component a): Can it be presumed that: 1) most of 
the information needed for decision-making is on local condi- 
(1?) Thus an h™ order node collects information on its local area, whereas 
the single 1st-order node collects information that pertains to the system 
of nodes (regions) as a system. 
(**) At times, several or all of these cost items may be considered as 
administrative cost, and less frequently as cost of « routine » administration. 
We prefer to consider any administrative cost not covered by our classifi- 
cation as belonging to the broad category of production costs. 
Differences in costs which may arise from different degrees of articulation 
and coordination of activities associated with different patterns of spatial 
decentralization will be treated later as differences in « overview advantage. » 
('*) It should be kept in mind that each of these components may be 
directly related to various explicit rules that may be used in determining 
the volume and nature of information to be collected, the wavs in which 
information is to be processed, the type and volume of information to be 
communicated, the media by which communications are effected, the kind 
of information to be considered by decision makers, the form of its pre- 
sentation and so forth. Clearly, these rules will be related to attitudes and 
sther variables which are to he considered in a later section. 
121] Isard - pag.
	        
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