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On the Treatment of Foreigners and Foreign-owned Firms in the Cost-benefit Analysis of Transport Projects

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  • Per-Olov Johansson
  • Ginés de Rus

Abstract

This paper addresses the issue of the treatment of foreigners and foreign-owned firms in the cost-benefit analysis of transport projects. The distinction between the indirect utility function of national and non-national allows the consideration of some relevant cases. These are: the common case of zero weights to foreign consumers, and foreign companies shipping their producer surpluses abroad; the case of local firms owned by foreigners; the altruist local household case; the consequence of fixed factors (for example, land) for the evaluation of foreign surpluses in infrastructure investment; and the case of transnational projects with asymmetrical distribution of costs and benefits.

Suggested Citation

  • Per-Olov Johansson & Ginés de Rus, 2019. "On the Treatment of Foreigners and Foreign-owned Firms in the Cost-benefit Analysis of Transport Projects," Journal of Transport Economics and Policy, University of Bath, vol. 53(3), pages 199-19-211.
    • Handle: RePEc:tpe:jtecpo:2019:53:3:199--211
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