So far the discussion of Paretian efficiency conditions has been in terms of a static economy, that is one in which the problem is to maximise welfare by the distribution of a given number of resources. In practice the stock of resources can be used at different rates and in different ways to give various output totals and mixes at different points in time. This chapter is concerned with the principles and problems of extending Paretian criteria to this more realistic situation.
Unable to display preview. Download preview PDF.
Suggestions for Further Reading
- K. J. ARROW, ‘Discounting and Public Investment Criteria’, in Water Resources Research, ed. A. V. Kneese and S. C. Smith (Baltimore: Johns Hopkins Press, 1966).Google Scholar
- M. S. FELDSTEIN, ‘Net Social Benefits and the Public Investment Decision’, Oxford Economic Papers, vol. 16 (1964).Google Scholar
- M. S. FELDSTEIN AND J. M. FLEMING, ‘The Problem of Time-Stream Evaluation: Present Value versus Internal Rate of Return Rules’, Bulletin of the Oxford University Institute of Economics and Statistics, vol. 26 (1964).Google Scholar
- S. A. MARGLIN, ‘The Social Rate of Discount and the Optimum Rate of Investment’, Quarterly Journal of Economics, vol. 77 (1963).Google Scholar
- E. J. MISHAN, Elements of Cost Benefit Analysis (London: Allen & Unwin, 1972).Google Scholar