 Efficiency Evaluation of Large-Scale Railway Projects Using the Model of Russian EconomyN.I. Suslov (nsus@academ.org) and A.B. Khutoretskii(hab@dus.nsc.ru) Journal "Region: Economics and Sociology", 2015, vol. 3 Abstract: In this article, we modify the well-known inter-regional inter-sectoral optimization model (ОМММ), which makes it possible to incorporate a large-scale railway investment project. If the development of the national economy is deterministic, the model estimates the possible impact of the project on households' consumptive use. This helps to evaluate the macroeconomic efficiency of the project in the given development scenario. The uncertainty of economic development can be reflected in a representative set of scenarios. We consider the comparison of competing projects under the scenario uncertainty as a game against nature. We argue that Wald's criterion is appropriate for investors, whereas managers would possibly prefer Savage's criterion. If the projects use public funds, the interests of society and the government employees selecting projects for implementation may differ significantly due to inconsistency between the criteria. Keywords: investment project; rail transport; macroeconomic efficiency; method of evaluation; inter-regional inter-sectoral optimization model; scenario uncertainty (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nos:regioe:2015-3_2 Access Statistics for this article More articles in Journal "Region: Economics and Sociology" from Institute of Economics and Industrial Engineering of Siberian Branch of RAS |
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