Dynamic cost-benefit analysis of large projects: The role of capital and investment costs

Chuan-Zhong Li () and Löfgren, Karl-Gustaf ()
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Löfgren, Karl-Gustaf: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 727, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: Based on an ideal index for de.ating after-project prices, we derive a dynamic cost-bene.t rule for evaluating large projects. We show that, in addition to the conventional income and consumer surplus meaures, the rule also entails an extra term involving capital and investment cost changes.

Keywords: cost-benefit rules; large projects; capital costs (search for similar items in EconPapers)
JEL-codes: D60 D90 Q20 Q40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ppm
Date: Written 2008-02-01
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