 Domestic Price System of Economic AnalysisSteve Curry and
John Weiss
Chapter 6 in Project Analysis in Developing Countries, 1993, pp 129-163 from Palgrave Macmillan Abstract: Abstract The previous chapter discussed how all project outputs and inputs can be valued at world prices to assess their trade opportunity costs. Economic analyses can be carried out using different units of account or numeraire. As with distance, which can be measured in miles or kilometres, the choice of different units makes the same calculation appear different, but provided equal accuracy is used, the results will be directly equivalent. This chapter considers how domestic prices can be used to measure trade opportunity costs, in what we will term a domestic price system. It commences by discussing the conditions under which world and domestic price systems give equivalent results. It then considers the shadow exchange rate, a key parameter in the domestic price system. The detail of how conversion factors for traded and non-traded goods and labour are derived in a domestic price system is discussed, before land and the discount rate are considered briefly. The appendix reworks the PSF case study in a domestic price system. Date: 1993 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:pal:palchp:978-0-230-37850-6_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.