Swales, John Kim (contributor) - 2008
the cost of public funds, c, or the extent of
non-additionality, r, the optimal subsidy and additional welfare falls, so …. If the firm rejects the scheme, at node F
2
it
chooses either to implement the project or not. The pay-offs at this … participation
constraint is not met. This implies that for the discretionary scheme with appraisal error
where 1
β
α
≥ and 2
DA
g …