Ake E.Andersson has always been intellectually on the move. He has selected his own track through the academic system and has formed a school of thought which has brought him international recognition. The cornerstones of his scientific interest are welfare analysis, regional economic dynamics and human capital theory. For his excellent achievements on dynamic analysis in the field of regional economics and regional planning he received the Japanese Honda Prize in 1995. This book provides a sample of the broad ranging research of Ake E.Andersson. Here some of his friends and colleagues have contributed to give various examples from the growing research field "Knowledge and Networks in a Dynamic Economy" in which he has been a great inspiration and in which he has contributed as part of his prodigious output.

In revising the Tinbergen Lectures I have expanded and restructured the material in an attempt to make the book more readable and more interesting. I have also tried to show more clearly its relevance to managerial and organizational practice. Some mathematical derivations have been moved to appendices. Certain sections that may be skipped in a first reading have been starred. Points that should be of interest to management include * the nature and necessity of rank (4. 1, 4. 2, 4. 4) rank assignment by counting up or down (4. 3) defining an organization's task (6. 2) calculating the required size of an organization (6. 3) * allocating supervisors in the short run (6. 7) when uniform spans of control are desirable (6. 8) * how to estimate an organization's implicit span of control (7) determining the minimal ranks in supervision (8. 3) * the advantage of flexible department lines (8. 4) measuring the leanness of an organization (8. 5) the relationship between average wage and unit labor cost (10. 2) job allocation in the short run (10. 4) * calculating the cost of supervision for particular jobs (10. 5) * recognizing economic choices in substituting managers for operatives or vice versa (11) * determining the optimal size of a research team (12) VI * setting targets (13. 1) * budgeting under full information (13. 2) * budgeting under imperfect information (13. 3) * sources of information loss (14.

If production exhausts some resources and these are necessary in future production even though some substitution of producible resources is pos sible, how should the available stocks of exhaustible resources be allocated to present and future production? The objective considered is to maximize the present value of the utility of current and future consumption. When production functions are Cobb-Douglas and the utility functions are logarithmic, the optimum decision rule has the simple form: use up the fraction l-e of the remaining amount of every exhaustible resource in every period. Here fl is the discount factor. Conversely if rates of use of exhaustible resources are given, then these imply a time rate of discount for future utility. Depending on e and on the rate of technical progress (assumed as exogeneous) a stationary state or even growth are possible. But rates of resource exhaustion above a critical level imply a steady decline and eventual extinction. La production epuisant certaines resources qui seraient indispensables a la production future bien qu'on puisse substituer a un certain degre, les resources productibles, comment faut-il assigner a la production presente et future, les stocks disponibles des resources epuisables? II faut resoudre ce probleme dans Ie but de porter au maximum, la valeur actuelle de l'utilite de la consommation courante et future."