SIMILARITIES AND DISSIMILARITIES BETWEEN LITTLE MIRRLEES AND UNIDO APPROACHES

 LITTLE-MIRRLEES & UNIDO SIMILARITIES

1.         The calculation of shadow price particularly for foreign exchange saving and unskilled labor is same in both methods.

2.         Both methods consider factors of equity.

3.         Both methods use DCF (Discounted Cash Flow) methods.

 LITTLE-MIRRLEES & UNIDO DISSIMILARITIES

1.       UNIDO method also emphasis calculation of financial profitability of market prices along  with   SCBA            but this is not so done in case of Little-Mirrlees method.

2.         Little-Mirrlees method measures cost and benefit in terms of international currency that is in border price or world price in $. UNIDO approach measure costs and benefits in terms of domestic currency.

3.         The numeraire in case of Little-Mirrlees approach measures cost and benefit in terms of uncommitted social income. On the other hand in UNIDO method it measures the same in terms of domestic consumption.

4.         UNIDO approach focuses efficiency, saving and redistribution of income stage by stage while Little-Mirrlees approach considers the same in totality.

Collected By: Samir Hari Sharma