Human Development and Regional Disparities in Iran:A Policy Model



aij = the contribution of the ith project to the jth to the target set for indicator j,

Tj = the proposed target for the jth indicator for the province under consideration,

lij = human resources required by the ith project related to indicator j,

Lj= available human resources of the kind required by projects related to indicator j,
n
j = the number of projects related to indicator j,

J = the number of selected indicators.

Further limitations related to other scarce resources can be included in the model in the form of
appropriate constraints. The above model can be used for individual provinces. However,
considering provinces individually may be undesirable as resources are transferable within a
country amongst various provinces. Assuming such transferability in general we may formulate
the following project selection model for all provinces.

RJnrj

Minimise Z =∑∑∑cirjXirj

r=1 j=1 i=1

nj

Subject to      arXir Tj        , for r=1,2,...,R; and J=1,2,...,J.

i=1

R nrj

∑∑ lirjXirjLj               for j=1,2,.,J.            (6)

r=1 i=1

1, if the ith project related to the jth indicator is selected,

Xirj=

0, if the ith project related to the jth indicator is not selected.

Where

cij =the cost of implementing project i related to indicator j in the rth province,

Xirj =the ith project related to the jth indicator for the rth province,

airj = the contribution of the ith project to the jth target set for indicator j in province r,

Tjr = the proposed target for the jth indicator for the rth province,

lirj = human resources required by the ith project related to indicator j for province r,
Lj = available human resources of the kind required by projects related to indicator j,
njr = the number of projects related to indicator j for province r,

13



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