Dynamic cost-benefit analysis of large projects : the role of capital costs

Chuan-Zhong Li and Karl-Gustaf Löfgren

This paper derives a dynamic cost-benefit rule for evaluating large projects.We show that, in addition to the conventional income and consumer surplus measures, the rule also entails an extra term involving capital cost changes. -- cost-benefit rule ; large project ; capital cost

Year of publication:	2010
Authors:	Li, Chuan-Zhong ; Löfgren, Karl-Gustaf
Publisher:	Uppsala : Uppsala Univ., Dep. of Economics
Subject:	Kosten-Nutzen-Analyse \| Cost-benefit analysis \| Projektbewertung \| Project evaluation \| Kapitalkosten \| Cost of capital \| Theorie \| Theory

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