英语翻译Shadow pricing,is used when placing a value on program o
英语翻译
Shadow pricing,is used when placing a value on program outcomes other than market price.Program outcomes that cannot be bought or sold,such as social value,can be ascribed a monetary value.Some effort may be required to construct good shadow prices,but frequently some items may have been sufficiently studied to provide accurate information-that can be used in program valuing by shadow pricing.For example,the cost of incarceration is about Rs 100 per person per day.When programs significantly reduce crime rates for participants as compared to non-participants,this shadow price can be used as a means of determining estimated savings to society.Reasonable and realistic application of shadow pricing is necessary in order to avoid overly optimistic or highly inflated estimates of program benefits.
Optimum allocation of scarce resource for production of goods and services in less developed economy is one of the important factors for having a successful development and planning.The use of market mechanism for determination of product and factor prices is not perfect and correct method because it leads to wrong allocation of resources.
In less developed economy the market mechanism functions imperfectly due to number of economic and social obstacles.Therefore,it is no possible to have project evaluation on the basis of imperfect market.It is also not possible to correctly assess the cost and benefits of a project when prices are rising during the process of planning.Shadow prices are basically used for assessing the effects of a project on the national income,which are also termed as external effects.This is done on the basis of the profitability criterion or cost-benefit analysis where both costs and benefits are calculated at accounting prices.Sometimes even rough estimates of shadow prices are also helpful.
In this context,Timbergen mentioned.“They may,for example,show how sensitive the priority figures of a number of projects are to change in such accounting prices.They may enable us to classify products in groups that are attractive under certain specified emergency circumstances...It may nevertheless have a rough guide for emergency cases." In a mixed economy,the public sector cannot be developed unless the prices of labor,capital,foreign exchange and other inputs are determined in accordance with shadow prices.Though very often shadow prices are rough estimates,yet the State should try to bring market prices close to the shadow prices of products and factors through-fiscal,monetary and other measures for the successful implementation of the plans.