SOME INVESTMENT CRITERIA FOR UNDERDEVELOPED AREAS,
Abstract
The controversy existing in a growing economy with respect to alternative welfare criteria or targets is discussed. For example, in an economy with minimal current living standards (leaving aside problems of definition and measurement), is it better to raise current consumption and neglect any consequences for future income flow, or is it better to forego present consumption in favor of future income. Or, if an economy contains several sectors, what are optimal strategies of resource allocation with respect to present and future income. Clearly, deciding such questions implies the need for a social welfare function or a set of social welfare functions which contain the usual innate logical difficulties. Mathematical models are presented in support of this theory.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1962
- Accession Number
- AD0607673
Entities
People
- Harvey Averch
Organizations
- RAND Corporation