284 



MULTIPLE PURPOSE RIVER DEVELOPMENT 



efficiency, economic, cont. 



in distribution of project output, 



192; 

 under divided ownership, 170; 

 efficient factor proportions, pro- 

 ducer's choice of, 30-32, Fig., 30; 

 efficient level of output, defined, 31; 

 goals other than, summarized, 265- 



66; 

 and higher criteria, 12-13, 49, 92, 



163, 164, 266; 

 improvement of, through extra- 

 market devices, 71-72; 

 and investment indivisibilities, 67-68; 

 marginal, of investment schedule, 89; 

 maximum, conditions for, 30-32, 47; 

 national, improvements in, 72-73; 

 under perfect competition, restate- 

 ment of conditions, 52; 

 policy changes suggested for achiev- 

 ing, 271-72; 

 sacrifice of, for higher criteria, 163, 



206n; 

 and social efficiency, 152, 156, 161 



(see also higher criteria, supra); 

 summary of conditions for, 40-41, 



267-68, 273; 

 summary of problems in achieving, 



268-72; 

 and technical efficiency relationships, 



16; 

 and use of public funds, 3, 10, 53, 



71-72; 

 and utility maximization, 17 

 efficiency, technical relationships in, 



15-16, 45, 45n 

 electro-process industries, 62, 62n, 161; 

 Bonneville power sales to, 236; 

 energy sales to, under federal devel- 

 opment, 238-39; energy sales to, 

 under local public development, 258, 

 258n; federal power for, policy 

 change concerning, 247n; gains from 

 federal power sales to, 247-57 

 Elliott, Reed A., 55n 

 enterprises (see also capital; corpora- 

 tions; investment, private; private 

 utilities; savings): and diminishing 

 marginal productivity, 27-30, 31; 

 efficiency conditions in, 25-32, 41; 

 maximum efficiency conditions for, 

 30-32, 47; and production function, 

 26-27, Figs., 28, 29; 



equilibrium, 52; competitive, 41; gen- 

 eral, 17n; of producers, how deter- 

 mined, 32 



equity capital, 48 



equity considerations: in income dis- 

 tribution, 3, 10, 11-12, 14, 200, 276- 

 77; in policy decisions, 276-77; re- 

 garding financing nonmarketable 

 project services, 204, 271; regarding 

 flood control costs, 196; in use of 

 taxing power, 273 



equity shareholder: as beneficiary of 

 shifted tax burden, 223, 260, 276; 

 financial incentives to, 227 



ethical considerations, in distribution 

 of income and consumption, 12, 77, 

 89, 125-26 



Etowah River, 172, 175 



Eugene, Oregon, 205, 206n 



excise taxes: cost of, borne by produc- 

 tion factors, lOOn; reduction of, and 

 average income elasticity, 99-100; re- 

 duction of, and distribution of 

 family income, 100-101, lOln, Table, 

 101; reduction of, and stimulation of 

 consumption, 90, 92, 99-101, 223-24 



expectations: ex ante, 47; realized, 47; 

 of rising or falling income, 87 



expenditures, "differential incidence" 

 of, 90n 



expenditures, public {see also federal 

 funds; public funds): financed by 

 government loans, 119; reduction in, 

 90 



external economies, 69-70, 74, 160, 266; 

 of Hungry Horse project. Table, 62, 

 Fig., 63; pecuniary, 59, 59n; tech- 

 nological {see also interdependence), 

 56, 59n, 71, Table, 62, Fig., 63 



external financing of small corpora- 

 tions, 115 



extra-market allocation of resources, 

 53,56,60,71-72 



extra-market incentives, 53, 56, 60, 71- 

 72, 199 



factor costs, 71, 75 



factor prices, 31, 32 



family income {see also low-income 

 families; upper-income families): dis- 

 tribution of, and excise-tax reduc- 

 tion, 99-101, Table, 101 



farm income, 105 



