The Measurement of the Economic Benefits of Infrastructure Services

by Walter E. Diewert

Overview

This research was supported by the World Bank and the Social Sciences and Humanities Research Council of Canada. Neither institution is responsible for the views expressed in this paper. The author is indebted to V. Corbo, A. Haymer, Y. Kanemoto, K. Lee, K. Mera, Hal Varian and A. Walters for helpful comments and to Elizabeth Lambert, Shehnaz Motani', and Jeanette Leigh Paisley for excellent typing services. I would like to dedicate this book to my wife, Virginia. TABLE OF CONTENTS 1. Introduction . . . •. . ••. . •. ••. •••. . . . •. . . . . •. •. . . •. . . •. •. •. . •. . . •. ••. • 2. A Simple Producer Benefit Measure . . ••. •••. ••••. •••••••••••. ••••••. • 8 3. Willingness to P~v Functions and Marginal Cost Functions ••••••••••• 15 4. Approximate Benefit Measures 30 5. Problems with the Producer Benefit Measure ••••••••••••• ! ••••••••••• 41 5. 1. Static versus Dynamic Benefit Measures ••••••••••••••••••• 41 5. 2. The Problem of Endogenous Prices for Local Goons ••••••••• 48 5. 3. The Neglect of Consumer Benefits' ••••••••••••••••••••••••• 56 6. Alternative Approaches to Benefit Measurement •••••••••••••••••••••• 70 6. 1. The Questionnaire or Sample Survey Approach •••••••••••••• 70 6. 2. Ex Post Accounting Approaches •••••••••••••••••••••••••••• 72 6. 3. Engineering and Mathematical Programming Approaches •••••• 74 6. 4. The Applied General EquilibriumModelling Approach ~ •••••• 75 6. 5. The Differential Approach •••••••••••••••••••••••••••••••• 77 6. 6. The Econometric Approach . . •••••••••. •. ••••••. •••••••••. •• 79 7.

Product Details

ISBN-13:	9783540168102
Publisher:	Springer Berlin Heidelberg
Publication date:	10/24/1986
Series:	Lecture Notes in Economics and Mathematical Systems , #278
Edition description:	Softcover reprint of the original 1st ed. 1986
Pages:	202
Product dimensions:	6.69(w) x 9.61(h) x 0.02(d)

Table of Contents

1. Introduction.- 2. A Simple Producer Benef it Measure.- 3. Willingness to Pav Functions and Marginal Cost Functions.- 4. Approximate Benefit Measures.- 5. Problems with the Producer Benefit Measure.- 5.1. Static versus Dynamic Benefit Measures.- 5.2. The Problem of Endogenous Prices for Local Goods.- 5.3. The Neglect of Consumer Benefits.- 6. Alternative Approaches to Benefit Measurement.- 6.1. The Questionnaire or Sample Survey Approach.- 6.2. Ex Post Accounting Approaches.- 6.3. Engineering and Mathematical Programming Approaches.- 6.4. The Applied General Equilibrium Modelling Approach.- 6.5. The Differential Approach.- 6.6. The Econometr ic Approach.- 7. The Selection of a Functional Form in the Econometric Approach.- 7.1. General Issues.- 7.2. The Translog Restricted Profit Function.- 7.3. The Biquadratic Restricted Profit Function.- 8. The Selection and Measurement of Variables in the Econometric Approach.- 8.1. The Measurement of Outputs.- 8.2. The Measurement of Intermediate Inputs.- 8.3. The Measurement of Labour.- 8.4. The Measurement of Inventories of Goods in Process.- 8.5. The Measurement of Capital Sk Components.- 8.6. Aggregation over Goods.- 8.7. The Measurement of Infrastructure Variables.- 9. The Estimation of Restricted Profit Functions in the Time Series Context.- 10. The Estimation of Restricted Profit Functions in the Cross Sectional Context.- 11. Conclusion.- Appendix 1: Properties of Restricted Profit Functions.- Appendix 2: Properties of Restricted Cost Functions.- Appendix 3: Properties of Restricted Expenditure Functions.- Appendix 4: Proofs of Propositions.- References.