Simple linear planning models: Structure and implications

Summary

Linear planning models of the static type can still play a useful part in allowing to sketch alternative feasible medium-term programs; their reality content will, however, be increased as a function of the integration of correctly specified behavioural relations. It is shown how relations of this type (consumption functions, investment functions) can be embodied in the more technically oriented ‘classical’ models. A second feature planners are interested in, is to know what doses of economic policy will have to be injected into the system in order to reach the targets; some hints as to the degree of spontaneous realization of the targets of a development program might be derived from the implicit dynamics of the static system.