Externalities in Centralized and Decentralized Economies.
HARVARD UNIV CAMBRIDGE MASS
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The paper is concerned with the role of the rate of return on capital in aggregate and disaggregative dynamic models. Both models illustrate the use of intertemporal analysis in fiscal models. Many issues are skirted which are of central relevance to cost-benefit analysis, but the paper attempts to illustrate how important the role of the rate of return on capital is in almost all such discussions, particularly regional cost-benefit projects. The interdependence between private inputs and public inputs for local industries and projects is defined and studied at length in the second half of the paper, and contrasted with the utility maximization approach of the first half. Author Modified Abstract
- Economics and Cost Analysis