(Ebook) Public Investment Criteria: Using an Interregional Input-Output Programming Model (New Frontiers in Regional Science: Asian Perspectives, 2) by Kohno, Hirotada, Higano, Yoshiro ISBN 9784431552208, 4431552200

(Ebook) Public Investment Criteria: Using an Interregional Input-Output Programming Model (New Frontiers in Regional Science: Asian Perspectives, 2) by Kohno, Hirotada, Higano, Yoshiro ISBN 9784431552208, 4431552200

​This volume presents the most robust and useful methodology for the measurement of the economic effects of public investments. This methodological approach solves inherent defects of the traditional methodology, namely, an ad hoc application of the cost---benefit ratio analysis based on a simple summation of itemized economic effects on public investment criteria. In particular, it comprehensively solves (1) leakage and duplication of economic effects calculated; and (2) arbitrariness of the public investment choice set. The methodology adopts the general and dynamic simulation approach and solves defect (1). Secondly, the assignment of the public investment budget for all the possible and not predetermined investment targets is endogenously optimized to reflect the opportunity cost criterion. Applications of the methodology are also included in the book, which is helpful for practitioners as well as experts who wish to learn about the meaning of the theoretical argument related to public investment, including economic effects and the opportunity cost criterion.