Some observations on economic programming in Italy

Abstract

The present paper analyses the Italian Draft Program of economic development for 1965-69. The Plan was first conceived at the tail-end of a long period of growth of the Italian economy which lasted through the fifties and came to an end in 1961, a period which was characterised by fairly stable economic conditions. Because of this, the Plan takes for granted a continued growth with equilibrium, with the targets and data reflecting that past period. Such circumstances, however, are not likely to be repeated in the coming years. The author thus subjects the Plan’s extrapolation techniques and choice of objectives to a critical scrutiny. The internal consistency of the basic model is appraised, given its importance as a matrix of policy choices for what appears to be a difficult period for the Italian economy.

JEL: O20