抄録
The purpose of this paper is to find the characteristics of optimal public investment process under regional development speed constraints in growing and non-growing regions.
First, the study defines regional development speed as the first derivatives of stock of facilities (X) with respect to time t. The desirable development process is, then, formulated in terms of development speed (_??_t) under speed constraints (G(_??_, X)_??_O) by regional collectivities, i.e., regional government, residents, and industries.
Secondly, the paper discusses the optimal process of development with two public facilities (productive and living) and one private capital in a closed, non-growing region. It is shown that conventional welfare maximization process inevitably leads to unbalanced growth during development process. The desirable process under speed constraints is, however, the balanced growth of two public facilities with a constant ratio.
Thirdly an optimal process in an open, growing region with a Cobb-Douglas production function is examined. The study shows that the optimal process in a population increasing stage is a balanced growth of public facilities so as to maintain percapita level which mainly depends on speed constraints.
