Contents 



PREFACE V 



PART I. CONCEPTS AND METHODS 



I. STATEMENT OF THE PROBLEM 3 



Characteristics of River Basin Development Programs 4 



Objectives of the Study 11 



Plan of the Study 13 



II. THE CONCEPT OF ECONOMIC EFFICIENCY: A Theory of 

 Efficient Resource Allocation 15 



Market Mechanics and Efficiency Criteria in a Perfectly 



Competitive Economy 17 



The Product Market 19 



The Labor Market 24 



Market Adjustments by Enterprises 25 



Factor Allocation over Time: the Capital Market . . 32 



Summary 40 



Critical Review of Some Fundamental Assumptions of 



the Competitive Model 41 



Unstated Assumptions of the Model 42 



Satisfaction of Group Wants 42 



Direct Interdependence 43 



Indivisibility in Production 44 



Departures from Competitive Assumptions in the 



Capital Market 47 



Income Distribution and Full Employment 49 



III. MARKET MECHANICS, RIVER BASIN DEVELOPMENT, AND 

 EFFICIENCY 52 



