Project evaluation with crowding out effects

Consider the technically feasible project (AX; AX^^; AX^) * Project output AX is achieved using a technology requiring the use of AX^ of input 1 and the quantity AX2 of input 2, If the project is scale neutral then we may write the technology of the project as (1; AX^^/^; ^2/^) where th latter ratios are input-output coefficients.-^ Both the scale and the input-output ratios are chosen autonomously but not arbitrarily. Typically the project output-input vector will reflect specific technological innovations such that it is not a subset of the currently known industry production function or technology set. The choice of project scale and s. \u27 * * technology reflects the (economic) rationality of the agency that proposes the project

The dual industry benefit loss function and extensions of the Harberger policy evaluation rule

Define the definite integral M(a, b) = J f(x) dx to equal the .shaded a curvilinear trapezoid bounded by y = fCx); the straight lines x = a, x=b and the horizontal axis. The definite integral M(a, b) depends, (1) on the form of the function f(x), (2) the lower limit of integration a, (3) the upper limit of integration b. The definite integral MCa^i b) does not depend on the variable of integration. The latter can be denoted by any letter; i.e. we can replace x by any other letter without affecting the value MCa, b

On the Differences Between the Commercial and Economic Profitability of a Project

The economic profitability of a project is derived from it\u27s commercial profitability by making two adjustments. First, an adjustment needs to be made for the change in.the sum of consumers\u27 surplus arid factor rents. Second, an adjustment has to be made for the change in tax revenues and subsidies. Conventional practice ignores the former adjustment and mistakenly asstimes that the taxes or subsidies paid by the projec

On the Differences Between the Commercial and Economic Profitability of a Project

The economic profitability of a project is derived from it's commercial profitability by making two adjustments. First, an adjustment needs to be made for the change in.the sum of consumers' surplus arid factor rents. Second, an adjustment has to be made for the change in tax revenues and subsidies. Conventional practice ignores the former adjustment and mistakenly asstimes that the taxes or subsidies paid by the project</p