On modeling a planning, programming and budgeting system.

Abstract

A model of the planning and programming aspects of a PPB system is formulated. It incorporates the component parts of a PPB system structure and the multiplicity of benefit and cost measures, both commensurable and incommensurable, so associated. Decision rules characterizing the choice of an efficient program package are derived. These rules indicate the usefulness of a program package numeraire. The comparative statics technique is applied and efficiency substitution and benefit effects derived. A program package cost-benefit function is developed. For a given program package decision, the expansion-contraction paths are also derived and characterized.