 Alternative Preference Functions in Problems of Investment Planning on the National LevelS. Chakravarty
Chapter Chapter 6 in Activity Analysis in the Theory of Growth and Planning, 1967, pp 150-169 from Palgrave Macmillan Abstract: Abstract Numerous features distinguish activity analysis from neo-classical economics. Of these, one can mention two outstanding ones: (i) the importance of an exact specification of the functional relationships customarily employed in an economic maximization problem, and (ii) the recognition that sharp equality relations are relatively rare in economics. This implies that inequality relationships are often crucial to a problem, including the special requirement of nonnegativity on variables such as prices and quantities. Exact specification of functions is necessary to ensure that a local maximum is also a global maximum, and further, that we should be able to compute the solution to a maximizing problem, rather than satisfy ourselves with the mere statement that a maximum exists. Much of the flexibility of the older techniques rested on paying insufficient attention to these features, which have been highlighted by recent discussions on activity analysis. Keywords: Maximization Problem; Preference Function; Terminal Condition; Final Demand; Planning Theory (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-08461-6_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-08461-6_6 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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