A Channel Model of Investment Decision: An Intertemporal Planning Approach.

The paper considers some theoretical implications of the Oslo-Cairo intertemporal planning model (the channel model). A version of the channel model with private and public investment projects is developed. The optimality properties of the model are derived. It is shown that: (1) Pareto solutions can be supported by competitive prices and (2) a ranking criterion can be constructed in the spirit of cost-and-benefit analysis. The results brings the channel model theoretically in line with the classical resources allocation models. Copyright 1990 by Kluwer Academic Publishers