On the Treatment of Foreigners and Foreign-owned Firms in the Cost-benefit Analysis of Transport Projects

Per-Olov Johansson and Ginés de Rus

Journal of Transport Economics and Policy, 2019, vol. 53, issue 3, 199--211

Abstract: This paper addresses the issue of the treatment of foreigners and foreign-owned firms in the cost-benefit analysis of transport projects. The distinction between the indirect utility function of national and non-national allows the consideration of some relevant cases. These are: the common case of zero weights to foreign consumers, and foreign companies shipping their producer surpluses abroad; the case of local firms owned by foreigners; the altruist local household case; the consequence of fixed factors (for example, land) for the evaluation of foreign surpluses in infrastructure investment; and the case of transnational projects with asymmetrical distribution of costs and benefits.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:tpe:jtecpo:2019:53:3:199--211

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