IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Estimating the Effectiveness of Capital Expenditures

Listed author(s):
  • L. V. Kantorovich
  • V. N. Bogachev
  • V. L. Makarov

In the course of technological planning of individual construction projects, when determing which design and planning variants to use, it is always necessary to compare the one-time expenditures (capital expenditures) and current costs (operating costs) to find the solution which gives the most profitable combination of the various kinds of social expenditures. The typical character of economic problems, in which reduction of operating costs by an increase in capital expenditures is attempted, has quite understandably led to an attempt by planners and designers to find principles which define a rational combination of these expenditures. As early as the 1920s, the problem of "effectiveness of capital investment" was stated with full clarity [1]. In the 1930s, engineers and designers, working primarily on energy and railroad transportation (see, for example, [2, 3]), formulated the idea of the norm of effectiveness â a planning standard expressing the social value of the resources in a capital investment and at the same time defining the desirable levels of their expenditure in each particulare case.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by M.E. Sharpe, Inc. in its journal Problems of Economic Transition.

Volume (Year): 19 (1976)
Issue (Month): 4 (August)
Pages: 108-134

in new window

Handle: RePEc:mes:prectr:v:19:y:1976:i:4:p:108-134
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mes:prectr:v:19:y:1976:i:4:p:108-134. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.