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Shadow Prices In The Cost Benefit Analysis

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  • Eugen Mitrică

    (Bucharest Academy of Economic Studies)

Abstract

The paper presents one of the most usual costs and benefits evaluation methods and its evolution. The method, used in Cost Benefit Analysis of important investment projects, converts the market prices in shadow prices with the purpose to reflect the full opportunity cost, including positive and negative difficult quantifiable externalities and also, to eliminate any possible market distortion. Particularities of this process for developing countries are approached.

Suggested Citation

  • Eugen Mitrică, 2011. "Shadow Prices In The Cost Benefit Analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 5(5(558)(su), pages 555-562, July.
    • Handle: RePEc:agr:journl:v:5(558)(supplement):y:2011:i:5(558)(supplement):p:555-562
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