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For an estimation of, whether really they have wanted to pay. Moreover, without
Corresponding market check of accuracy of the made estimations appraisers will be
To do the job more carelessly (not to mention political influences,
Which will be involved in game and will influence the government decision about
Subsidising of certain services). This offer represents the recipe
Large-scale squandering of means. Such policy will mean also
Redistribution of the income in favour of consumers of the blessings made in conditions
Reduced average costs. Moreover, the policy assumes
The additional taxation so, will move to a rise in prices above level
Limiting costs for those products and services which are a subject
The taxation. So, that for some products to save the prices on
Level of limiting costs, it is necessary to raise for all the others the prices above
Level of limiting costs. Pure benefit from such policy for me it is far not
It is obvious.
I have underlined these moments in article "Dispute on limiting costs". Already after I
Has realised importance of the remark stated by Volume by Wilson in debate in "Economy
- "p. 254 - 261, Price, Wilson Tom, 1945, Output Policy of State Enterprise: A Comment
//Economic Journal and 55. It has drawn attention to the close
Communications between financial independence and administrative structure. At
Presence of the grant the government will be anxious by reduction of its size and,
Hence, will want, at least, to a certain extent, to participate in
Management of the subsidised manufacture. Use of limiting costs
As bases of pricing, hence, will create the tendency to replacement
Private enterprise state and the decentralised functioning
The centralised. An inefficiency resulting improper in
Many other cases of structure of management, maybe, is most
Serious lack of use of limiting costs as bases
Are favorable for efficiency financial independence is necessary. And
Financial independence is incompatible with use of limiting costs as
Bases of pricing.
The pricing policy on limiting costs is mostly senseless.
How to explain, what it has won such support among economists? I
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