Inflation And Cost-Benefit Analysis
AbstractOne of the most frequent errors made in the preparation of investment project evaluations arises out of the improper accounting for the impact of inflation on the financial and economic performance of a potential project. In this case of commercial projects it is not uncommon to find the returns to the owner of the project (either private sector, government, or public enterprise) underestimated or overestimated by 50 percent or more simply as a result of the use of incorrect procedures in accounting for expected inflation. Similarly, in economic appraisals of projects, economists usually have ignored the financing and liquidity constraints which inflation imposes on the investment and operation of projects even when the realized rate of inflation is equal to the rate anticipated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 1978-08.
Length: 23 pages
Date of creation: Sep 1978
Date of revision:
Cost-Benefit Analysis; Inflation;
Find related papers by JEL classification:
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Glenn Jenkins, 1981. "An International Comparative Analysis Of The Taxation Of The Steel Industry," Development Discussion Papers 1981-07, JDI Executive Programs.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafik Majidov).
If references are entirely missing, you can add them using this form.