Study on Evaluation Efficiency of Investment for Regional Public Works

Abstract

The estimation of the influence of a public investment program should include not only the direct effects but also the indirect ones. In these cases the most important benefits are indirect, since they make production possible in other sectors of the economy. In this drafting, the author deals with an evaluation efficiency of investment for regional public works from the standpoint of indirect effects, by preparing the simplified model along the criterion of Jorge Ahumada. Thereupon, such efficiency is defined as the ratio of total value added in the region to the total amortization of direct costs plus associated costs. Then, the Econometric Model and Interregional Input-Output Analysis are promoted to the assumption of the value added and associated costs.