Public Investment Criteria: Using an Interregional Input-Output Programming Model

This book presents a robust and useful methodology for deriving investment criteria for public investment projects, overcoming the defects of traditional methodology and achieving a discrete and dynamic inter-regional input-output programming model. It provides optimal re-investment of capital funds for the trunk expressway network and other transport facilities, balanced with industrial capital formation, and includes applications in a composite transport system.

Format: Paperback / softback
Length: 484 pages
Publication date: 19 January 2023
Publisher: Springer Verlag, Japan

This comprehensive volume offers the most robust and practical methodology for deriving investment criteria for evaluating and planning public investment projects. The methodological approach addresses inherent shortcomings of traditional methodologies, such as the ad hoc application of benefit-cost analysis in static content. While this approach originated in the Harvard Group's water resources development project, the authors have developed a discrete and dynamic interregional input-output programming model. This model enables:

Establishing priorities among potential investment targets by considering the economic benefits brought by implementing a set of selected projects and diffusing them into the national economy.

Rational allocation of limited public funds to selected investment projects based on opportunity cost criteria in dynamic content.

These benefits serve as a source of capital funds for both public and private sectors over the planning horizon, and optimal re-investment of these funds is solved recursively in the endogenous model by approaching the turnpike path of the entire national economy.

As an optimal solution, the allocated levels for trunk expressway networks and other transport facilities are determined by period and region, while being balanced with the allocation for industrial capital formation.

In the background of these processes, the imputed price and opportunity costs, as a modern-day "god," remain latent. Readers with basic mathematical knowledge will gain a functional and practical understanding of opportunity costs and imputed prices in the evaluation and planning of public investment projects.

Weight: 777g
Dimension: 235 x 155 (mm)
ISBN-13: 9784431569077
Edition number: 1st ed. 2022