TY  - BOOK
AU  - Haveman,Robert H.
AU  - Krutilla,John V.
ED  - Resources for the Future.
TI  - Unemployment, idle capacity, and the evaluation of public expenditures: national and regional analyses 
AV  - HD1694.A5 H35
U1  - 352.48'008'71 HAV 
PY  - 1968///]
CY  - Baltimore
PB  - Published for Resources for the Future, by the Johns Hopkins Press
KW  - Program budgeting
KW  - Water resources development
KW  - Expenditures, Public
KW  - Full employment policies
KW  - Appropriations and expenditures.
KW  - United States
N1  - 
; Includes bibliographical footnotes
N2  - Two fundamental economic policy questions are how much will a certain public expenditure cost in diverted real resources, and how much will it use unemployed resources. The authors estimate the opportunity cost of a sample of water resources
projects during a period of excessive unemployment to find direct onsite labor and industry demands. They use the Office of Business Economics inter-industry relations table to derive labor demands by industry and the Bureau of Labor Statistics
industry-occupation matrix to derive occupational demands. "Labor response functions" are used to translate occupational labor demands into reemployment of unemployed workers; similar functions are used to translate underutilized capital into capital requirements for production. For 1960, the authors estimate that real costs range from 70 to 95 percent of market costs, depending on project type and response functions. Also, the interregional spillover from local projects is large and varies with region and project type. The methods they develop may be applied to any public expenditure. It may be inferred that such an approach might reorder the priorities for public expenditure projects during a period of high national
or regional unemployment. Within the limits of the method and available data, the authors have performed creditably and
provide a handbook for future applications
ER  -