ABSTRACT
In Chapter 12 we explain (1) how to turn the decision about aggregate investment into a detailed or comprehensive investment plan that decides how much of many different capital or investment goods we should produce each year and (2) how we can allocate, distribute, or assign “user rights” over these different capital goods to different firms in different industries each year. A key finding is that the price demanders should be charged for capital goods produced during any year should be somewhat higher than the social cost of their production when the marginal utility from consumption is falling from year to year.
