ISSN:
1574-0277
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract This paper compares the results of two multisectoral models used to plan the dynamic consistency of sectoral investment. Solution of an optimizing model forecasts a frontier of the economy's future choice set. This frontier represents a ten year welfare gain only 2 or 3 percent greater than any investment program simulated by a dynamic Leontief system. The paper explains what efficient behavior accounts for the “better” performance of the optimizing model. Developing dynamic programming models is costly in terms of data, computational complexity, man-machine interaction, and solution interpretation. Therefore, it is recommended that the lessons derived by working with the dynamic LP be applied to improve the planner's control of the less expensive input/output simulation model.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF00410552
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