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Specificities of using the cost-benefit analysis for public projects financed by the structural funds

Author

Listed:
  • Oana GHERGHINESCU
  • Anca BANDOI

    (University of Craiova)

Abstract

Cost-benefit analysis is a major step in carrying out a feasibility study, as it allows for expressing an opinion on the economic and social value of the project as well as for a ranking according to their potential to create or increase net social benefits. Among the weaknesses of this type of analysis, we might mention that its applicability is quite limited in terms of social policies, it requires a high level of practical experience and the capacity of risk event handling, especially for projects that produce particularly long-term intangible qualitative benefits. Overall, one may conclude that the cost-benefit analysis is much more than a simple exercise in algebra, requiring the capacity to master various techniques to allow for estimates in the medium and long run.

Suggested Citation

  • Oana GHERGHINESCU & Anca BANDOI, 2010. "Specificities of using the cost-benefit analysis for public projects financed by the structural funds," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(11), pages 236-242, May.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2010:i:11:p:236-242
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    More about this item

    Keywords

    cost-benefit analysis; public projects; structural funds;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • G00 - Financial Economics - - General - - - General

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