Abstract

A linear programming model is developed to investigate some of the characteristics of alternative rates of expansion of the irrigated agricultural economy of the Rio Negro basin in southern Argentina over a twenty-year period. While essentially a demandled model, expansion rates can be imposed and the economic impact of such suboptimizing behavior then compared to the optimal outcomes. The approach used is a multiperiod linear programming model in which both farm and social infrastructure investments in a given period have an impact on both output and physical and human resource availabilities in subsequent periods. These activities give rise to time streams of costs and returns which are discounted at alternative discount rates to observe the behavior of the model under differing assumptions as to the proper rate.

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