ABSTRACT
This part of the book discusses on how to plan investment – producing capital goods instead of consumption goods in order to be able to produce even more goods in the future. It also talks about investing in various kinds of infrastructure necessary to support a great deal of economic activity in modern economies. Investment and development planning over many years raise new issues and problems. In this part, participatory investment planning is discussed in a simple, single-good context sufficient to explore key issues about deciding on the appropriate level of aggregate investment, and then in a multi-good world where decisions must be made about how much of different capital goods to produce and how to distribute them among different firms in different industries. Lastly, different kinds of plans, concerning different aspects of how people want their economy to “develop” over time are addressed.
