Beyond the Rule of Thumb: Methods for Evaluating Public Investment Projects
Cover -- Half Title -- Title -- Copyright -- Dedication -- Contents -- Preface -- 1 Understanding Shadow Prices -- Objectives, Constraints and Policy Instruments -- The Derivation of the Cost-Benefit Test -- Decision Rules and Shadow Prices -- Informational Requirements vs. Assumptions -- Summary and Conclusions -- Notes -- 2 Projects and Plans -- Shadow Prices and Decentralized Prices -- Large Projects -- Public Goods Projects and Environmental Benefits -- Project Appraisal and Project-financing -- The Appraisal of Private Projects -- Summary and Conclusions -- Notes -- 3 Measurement and Choice -- Economists and Statisticians -- Measuring the Welfare of an Individual -- Discounting the Welfare of an Individual -- Aggregating Welfare Measures Across Individuals -- One-consumer Economies and the Compensation Principle -- Full-comparability and Welfare Weights -- Beyond Neutrality -- Welfare Information and Social Choice -- Summary and Conclusions -- Notes -- 4 Shadow Prices and Market Prices -- A Perfect Economy -- The Design of a Second-best Problem -- Production and Consumption Efficiency and Shadow Pricing Rules -- Small Open Economies and the Border Pricing Rule -- Numeraire Rules -- Discounting Rules -- How Should Market Prices Be Adjusted? -- An Example: The Shadow Wage Rate -- Issues of Descriptive Accuracy -- Summary and Conclusions -- Notes -- 5 Appraising the Appraisals -- Learning from Mistakes -- Fifteen Years After -- The Project-cycle: Does It Make Sense? -- Weights or Constraints? -- General Equilibrium vs. Partial Equilibrium Models -- Policy-makers and Appraisers -- Notes -- Bibliography -- Index.