280 



MULTIPLE PURPOSE RIVER DEVELOPMENT 



Alabama-Coosa river system, cont. 

 efiBciency of alternative plans, cont. 

 proposed structures, 182; 

 Public Law 346, efficiency require- 

 ments of, 187; 

 summary and conclusions, 196-98: 

 benefit-cost criterion, interpreta- 

 tion of, 197; 

 efficient private development, pres- 

 ence of conditions for, 196; 

 flood control costs, ways of recoup- 

 ing, 198 

 Alabama Power Company (see also 

 Alabama-Coosa river system), vi, 173, 

 174, 199; application for preliminary 

 permit, 176; and flood control costs, 

 compensation for, 192-96; hydroelec- 

 tric facilities of, 175-76, Table, 176; 

 proposal to trade flood control for 

 headwater benefits, 198 

 Alabama River, 173, 174 

 Allatoona project: construction of, 175; 

 headwater benefits of, 180, 180rj, 195- 

 96 

 Allied Chemical and Dye Corporation, 



249n, 253 

 alternative costs, 73-74, 154 

 Aluminum Company of America: and 

 TVA, agreement between, 165; and 

 TVA, as an integrated system, 65, 

 65 n 

 aluminum industry: consumers, distri- 

 bution of gains to, 251; distribution 

 of gains by, 248-51; electrical energy 

 requirement for aluminum, 248n; 

 freight charges on distribution of 

 metallic aluminum, 250; households, 

 distribution of gains to, 252; labor, 

 distribution of gains to, 251; petro- 

 leum coke, sources of, 249n-250n; 

 railroads, distribution of gains to, 

 251-52; regional distribution of gains 

 retained before taxes, 251; regional 

 power rates, and aluminum reduc- 

 tion facilities, 248; transport costs of 

 assembling raw materials, 249-50 

 amortization, accelerated: costs and 

 gains related to. Table, 261; effect 

 on shifting tax liabilities, 220-23, 

 227; handling of deductions under, 

 223n; income redistributive conse- 

 quences of use of, 264; as an instru- 

 ment of economic policy, 223n; 



amortization, cont. 



power rates under, 249n; private de- 

 velopment under, as inconsistent 

 with development objectives, 276; 

 regional distribution of gains from, 

 260-61,Tables, 245, 261 



amortization periods, significance of 

 length of, 212 



Apalachia Dam, 67 



assembly costs of raw materials, 58, 

 248, 249 



assumptions of the competitive model 

 (see also consumer preferences; con- 

 sumer sovereignty; perfect competi- 

 tion; profit maximization; satisfac- 

 tion maximization): in the capital 

 market, 32-40, 47-48; departures 

 from, 41-42, 47-78, 71 {see also indi- 

 visibility; interdependence); divisi- 

 bility, 45, 61; implicit, 42-46; and in- 

 come distribution, 49-51; independ- 

 ence, 43, 61; realism of, 41-46; sum- 

 marized, 18-19 



Atomic Energy Commission, 246 



average cost, 58 



average payout ratio of dividends to 

 earnings, 112, 112n 



average price, 74 



average tax liability, 109n 



balanced budget, 90n 



bank loans, 81, 82; distribution of 

 (1955), 121; interest rates on, 83, 

 94-95, 121, 121n 



Baumol, William J., 43n, 57n, 92n, 

 213n 



benefit-cost analysis {see also benefit- 

 cost efficiency criterion; benefit-cost 

 ratio), 71-77, 129-30, 142, 142n, 191; 

 and alternative costs, 73-74; and effi- 

 ciency requirements, 76; estimation 

 of costs, 75-77; evaluation of bene- 

 fits, 73-75; and national economic 

 efficiency, 72-73, 72?J-73n; and social 

 marginal productivity, 71-73 



benefit-cost efficiency criterion, 130, 

 134, 197 



benefit-cost ratio, 142, 142n, 146-47. 

 148n, 151, 152", 188, 189, 193 



Bohm-Bawerk, Eugene V., 22n 



Bollinger, L. L., 105", 109n, 123n 



bonds, 81, 189, 209; corporate, rate of 

 return, 107; interest rates, 83, 91 



