Abstract
The direct economic effects such as saving effects of the running costs and saving effects of the time required are formed owing to the influence of the newly constructed expressway, the most part of which are “saved benefits,” so easily measured and of clear notion. But, the saved effects of the time required are in terms of physical unit of hour and minute, which must be converted to these in terms of money so as to add up the other various effects together. What acts as intermediary to this conversion is the “monetary evaluation rate of the saved time” (below, based on [12], [10], [11], etc.).
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Notes
- 1.
“mean value” means to be average value, which is statistical terminology.
- 2.$$ \begin{array}{c}\frac{\frac{dW}{d{x}_t}}{\frac{dW}{d{x}_{t+1}}}=\frac{{\left(1+\rho \right)}^{-\epsilon t}\cdot {x}_o^{-\varepsilon }}{{\left(1+\pi \right)}^{-\varepsilon t}\cdot {P}_o^{-\varepsilon}\cdot {\left(1+d\right)}^t}.\frac{{\left(1+\pi \right)}^{-\varepsilon \left(t+1\right)}\cdot {P}_o^{-\varepsilon}\cdot {\left(1+d\right)}^{t+1}}{{\left(1+\rho \right)}^{-\varepsilon \left(t+1\right)}\cdot {x}_o^{-\varepsilon }}.\\ {}\kern0.5em =\frac{{\left(1+\pi \right)}^{-\varepsilon}\cdot \left(1+d\right)}{{\left(1+\rho \right)}^{-\varepsilon }}=\frac{{\left(1+\rho \right)}^{\varepsilon}\left(1+d\right)}{{\left(1+\pi \right)}^{\varepsilon }}\end{array} $$(2.16)
- 3.
\( \frac{x_{t+1}}{x_t}\sim \) marginal rate of substitution in production (on the transformation curve) .
\( \frac{\frac{dW}{d{x}_{t+1}}}{\frac{dW}{d{x}_t}}\sim \) marginal rate of substitution in consumption (on the social indifference cure < a welfare function in terms of goods >).
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Kohno, H. (2016). Time-Saved Evaluation and Social Discount Rate. In: Economic Effects of Public Investment. New Frontiers in Regional Science: Asian Perspectives, vol 1. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55224-6_2
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