Economic Effects of Public Investment

This book shows the necessity of measuring the incidence-basis indirect economic effects of public investments. The essential argument can be traced back to H. Mohring versus J. Tinbergen, the conclusions of one contradicting those of the other. Their arguments are called, respectively, "transfer" and "existing theory" of the indirect economic effect of public investments such as highways.

The author has first defined the categories of "generation-basis" and "incidence-basis" economic effects in addition to the categories of direct and indirect economic effects, and has shown that it is essential to measure the incidence-basis indirect economic effects for decision making about public investments. The second major point is that, in this sense, the measurement must rely on the general and dynamic spatial modeling simulation approach. The third essential point is that Tinbergen is correct as far as we have to cope with a real setting in which the Marshallian type of external economies exists.

Another characteristic is that the monetary (pecuniary) external economies are dealt with systematically, for the superiority of public investment criteria depends greatly on whether they are taken hold of or not. This book lays emphasis on the process toward the equilibrium, not the equilibrium itself.

Autorentext
Emeritus Professor, The University of Tsukuba, Japan

Inhalt

1 Definition of Economic Effects, Necessity of Measurement, Prototype Model, and Externalities.- 2 Time-Saved Evaluation and Social Discount Rate.- 3 Perfect Transfer Theory of Indirect Economic Effects Formation -based on the Generation base vs. Incidence base .- 4 Independent Existence Theory Forming Indirect Effects-Its Three Examples: Congestion Easing,Scale-Enlargement of Factory·Warehouse, Marshallian External Economies.- 5 Formation Process of Marshallian External Economies: Number 3-technological and marketable propagation.diffusion of the "technological external economies".- 6 Social Costs and the Measurement.- 7 Measurement of Evaluation Rate of Public Pollution (Noise) .- 8 Criteria of Benefits Valuation -remained vs. transferred, and generation base vs. incidence base.- 9 Verification of Independent Existence Theory depended on the Market Equilibrium Model -based on the great discrepancy of the benefits in generation base vs. the benefits in incidence base.- 10Generalization of Technological Propagation.Diffusion Extenalities based on the General Equilibrium Model of Formation Process of Marshallian External Economies: Number 4.- 11 Closing paragraph-on the occasion of closing this volume: Economic effects' theory and measurement.- At the end.- Subject Index.- Name Index.