Abstract
As to the formation of indirect benefits (≒economic effects), there are the transfer theory and the independent existence theory; apart from the former “transfer theory,” we call the assertion that does not utterly admit independently existing indirect benefits to be “perfect transfer theory.” Here, we intend to elucidate this assertion invoking the notion of generation base vs. incidence base, etc. (mainly, see [1]). About the independent existence theory, we treat it later.
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Notes
- 1.
The value from this easy calculation will be smaller than that of the actual calculation by the area of triangle of \( \frac{1}{2}\times \Delta {p}_1\cdot \Delta {q}_1={e}_0{e}_1m. \)
- 2.
However, the increase of selling amounts is the amounts transferred from the production sector to the consumer sector, which will be regarded as the increase of the activity level.
- 3.
s shows the s of strawberry.
- 4.
The perfect competition is the state of market which is formed under the four conditions such as (1) homogeneity of goods dealt with, (2) existence of a lot of demanders/suppliers, (3) perfectness of information, and (4) free taking part in free leaving.
- 5.
The indirect economic effects stream in incidence base of Table 3.1
$$ \beta +\beta \left(1-\beta \right)+\beta {\left(1-\beta \right)}^2+\beta {\left(1-\beta \right)}^3\cdots $$(3.7a)is the infinite geometrical series of the first term β, the common ratio \( \left( 1-\beta \right) \), the n th term \( \beta {\left( 1-\beta \right)}^{n\mathit{\hbox{-}} 1} \), and the last term, negligible small, so the summation over series is like Eq. (3.5) \( < \) in case of \( \left(1-\beta \right) \) × (3.7b) being deducted from (3.7b) \( >, \) where
$$ R=\beta +\beta \left(1-\beta \right)+\beta {\left(1-\beta \right)}^2+\beta {\left(1-\beta \right)}^3\cdots. $$(3.7b)$$ \frac{-\left(1-\beta \right)\;R=\beta \left(1-\beta \right)+\beta {\left(1-\beta \right)}^2+\beta {\left(1-\beta \right)}^3+\beta {\left(1-\beta \right)}^4\cdots \left(1-\beta \right)\times (3.7)}{R-\left(1-\beta \right)R=\beta } $$$$ R\left\{1-\left(1-\beta \right)\right\}=\beta \kern1em \therefore R=\frac{\beta }{1-\left(1-\beta \right)}=1 $$
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Kohno, H. (2016). Perfect Transfer Theory of Indirect Economic Effects Formation: Based on the Generation Base vs. Incidence Base. 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_3
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DOI: https://doi.org/10.1007/978-4-431-55224-6_3
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