PUBLIC INVESTMENT THEORY -- A NOTE

SEVERAL PRINCIPLES POTENTIALLY USEFUL TO ENGINEERS MAKING RECOMMENDATIONS ON THE ALLOCATION OF RESOURCES TO PUBLIC INVESTMENT ARE DISCUSSED. SOME OF THE RELEVANT SECTIONS OF ELEMENTARY ECONOMIC THEORY ARE SUMMARIZED. BRIEF REFERENCES ARE GIVEN TO ASPECTS UNDER STUDY BY ECONOMIC THEORISTS, AND ALSO TO THE COMPREHENSIVE SURVEYS WHICH HAVE BEEN PUBLISHED IN RECENT YEARS. THE LONG HISTORY OF THE SUBJECT AND RELATIVE SOPHISTICATION OF EARLY WORK ARE NOTED. THE DIVISION OF THE ELEMENTARY THEORY INTO COMPOUND INTEREST MATHEMATICS, ENGINEERING ECONOMY, AND COST-BENEFIT ANALYSIS, IS SHOWN TO PROVIDE A PROGRESSION FROM SIMPLE TO COMPLEX ECONOMIC QUESTIONS. THE MATHEMATICAL FRAMEWORK DEVELOPED BY HAWKEN IS USED TO INDICATE THE EQUIVALENCE OF SEVERAL APPARENTLY COMPETING METHODS OF INVESTMENT ANALYSIS. WELFARE ECONOMICS IS SHOWN TO PROVIDE SOME GUIDANCE IN THE SELECTION OF PRINCIPLES FOR RESOURCE ALLOCATION STUDIES. THE USE OF HIGHER AND LOWER LEVELS OF ANALYSIS, THE PRINCIPLES OF SUB-OPTIMIZATION, AND THE SELECTION OF PROXIMATE CRITERIA SUITABLE FOR USE IN AUSTRALIA ARE ILLUSTRATED. AN APPLICATION TO URBAN FREEWAY NETWORKS IS DESCRIBED BRIEFLY. /AUTHOR/

  • Supplemental Notes:
    • Vol 4, Pt 1, PAPER 440, PP 370-424
  • Authors:
    • Owens, J M
  • Publication Date: 1968

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  • Accession Number: 00201728
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Dec 29 1994 12:00AM