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A marginal cost of funds approach to multi-period public project evaluation: implications for the social discount rate

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  • Liu, Liqun

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  • Liu, Liqun, 2003. "A marginal cost of funds approach to multi-period public project evaluation: implications for the social discount rate," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1707-1718, August.
  • Handle: RePEc:eee:pubeco:v:87:y:2003:i:7-8:p:1707-1718
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    20. Snow, Arthur & Warren, Ronald Jr., 1996. "The marginal welfare cost of public funds: Theory and estimates," Journal of Public Economics, Elsevier, vol. 61(2), pages 289-305, August.
    21. Ramsey, David D, 1969. "On the Social Rate of Discount: Comment," American Economic Review, American Economic Association, vol. 59(5), pages 919-924, December.
    22. Usher, Dan, 1969. "On the Social Rate of Discount: Comment," American Economic Review, American Economic Association, vol. 59(5), pages 925-929, December.
    23. Quirk, James & Terasawa, Katsuaki, 1991. "Choosing a government discount rate: An alternative approach," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 16-28, January.
    24. Charles L. Ballard & Don Fullerton, 1992. "Distortionary Taxes and the Provision of Public Goods," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 117-131, Summer.
    25. Kenneth J. Arrow & Robert C. Lind, 1974. "Uncertainty and the Evaluation of Public Investment Decisions," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 3, pages 54-75, Palgrave Macmillan.
    26. Timothy Gronberg & Liqun Liu, 2001. "The Second‐Best Level of a Public Good: An Approach Based on the Marginal Excess Burden," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(4), pages 431-453, October.
    27. Mayshar, Joram, 1991. "On Measuring the Marginal Cost of Funds Analytically," American Economic Review, American Economic Association, vol. 81(5), pages 1329-1335, December.
    28. Mendelsohn, Robert, 1981. "The Choice of Discount Rates for Public Projects," American Economic Review, American Economic Association, vol. 71(1), pages 239-241, March.
    29. Dahlby, Bev, 1998. "Progressive taxation and the social marginal cost of public funds," Journal of Public Economics, Elsevier, vol. 67(1), pages 105-122, January.
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    Cited by:

    1. David F. Burgess & Richard O. Zerbe, 2013. "Appropriate discounting for benefit–cost analysis," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 7, pages 247-263, Edward Elgar Publishing.
    2. Vicente Fruet & Daniel Campos & Lorena Caridad, 2023. "Itaipu Binational Dam: A Quantitative Analysis of the Economic and Social Impacts in Paraguay. Successful or not?," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. de Palma, André & Lindsey, Robin & Proost, Stef & Van der Loo, Saskia, 2007. "Chapter 5 Comparing alternative pricing and revenue use strategies with the MOLINO model," Research in Transportation Economics, Elsevier, vol. 19(1), pages 111-131, January.
    4. Jurgita Baranauskiene & Vilija Alekneviciene, 2019. "Comprehensive Measurement of Social Benefits Generated by Public Investment Projects," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(4), pages 195-210.
    5. Calthrop, Edward & De Borger, Bruno & Proost, Stef, 2010. "Cost-benefit analysis of transport investments in distorted economies," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 850-869, August.
    6. Rui Yang & Yingwen Chen & Yiqun Liu & Yuchen Feng & Jianwan Ji & Christina W. Y. Wong & Xin Miao & Yanhong Tang, 2023. "Government–business relations, environmental information transparency, and Hu-line-related factors in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7215-7238, July.
    7. Ming Chung Chang & Shufen Wu, 2011. "Should Marginal Cost of Public Funds include the Revenue Effect?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(I), pages 1-16, March.
    8. Liqun Liu & Andrew J. Rettenmaier & Thomas R. Saving, 2021. "Discounting Environmental Benefits for Future Generations," Public Finance Review, , vol. 49(1), pages 41-70, January.
    9. Liqun Liu, 2004. "The Marginal Cost of Funds and the Shadow Prices of Public Sector Inputs and Outputs," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(1), pages 17-29, January.
    10. Liqun Liu, 2006. "Combining Distributional Weights and the Marginal Cost of Funds," Public Finance Review, , vol. 34(1), pages 60-79, January.
    11. Abeer Al Yaqoobi & Marcel Ausloos, 2022. "An Intergenerational Issue: The Equity Issues due to Public-Private Partnerships. The Critical Aspect of the Social Discount Rate Choice for Future Generations," Papers 2201.09064, arXiv.org.
    12. Akbulut, Hale & Seçilmiş, Erdem, 2019. "Estimation of a social discount rate for Turkey," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 78-85.
    13. Liqun Liu & Andrew J. Rettenmaier & Thomas R. Saving, 2004. "A Generalized Approach to Multigeneration Project Evaluation," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 377-396, October.
    14. Nigar HASHIMZADE & Gareth MYLES, 2009. "Cost-benefit analysis and the marginal cost of public funds," Departmental Working Papers 2009-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    15. Burgess, David F., 2013. "Reconciling alternative views about the appropriate social discount rate," Journal of Public Economics, Elsevier, vol. 97(C), pages 9-17.
    16. Proost, Stef & De Borger, Bruno & Koskenoja, Pia, 2007. "Chapter 3 Public finance aspects of transport charging and investments," Research in Transportation Economics, Elsevier, vol. 19(1), pages 59-80, January.
    17. Szekeres, Szabolcs, 2023. "Opportunity Cost of Capital, Marginal Cost of Funds and Numeraires in Cost-Benefit Analysis," MPRA Paper 118725, University Library of Munich, Germany.
    18. James Broughel, 2020. "Cost-Benefit Analysis as a Failure to Learn from the Past," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 35(Spring 20), pages 105-113.
    19. Dan Usher, 2006. "Should The Samuelson Rule Be Modified To Account For The Marginal Cost Of Public Funds?," Working Paper 1065, Economics Department, Queen's University.
    20. Szekeres, Szabolcs, 2023. "Opportunity Cost of Capital, Marginal Cost of Funds and Numeraires in Benefit-Cost Analysis," MPRA Paper 120058, University Library of Munich, Germany, revised 06 Feb 2024.
    21. David Burgess, 2008. "Removing Some Dissonance From the Social Discount Rate Debate," University of Western Ontario, Economic Policy Research Institute Working Papers 20082, University of Western Ontario, Economic Policy Research Institute.
    22. Liqun Liu & Andrew J. Rettenmaier & Thomas R. Saving, 2005. "Discounting according to Output Type," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 213-223, July.
    23. Liu, Liqun & Neilson, William S., 2006. "Endogenous private safety investment and the willingness to pay for mortality risk reductions," European Economic Review, Elsevier, vol. 50(8), pages 2063-2074, November.
    24. Liqun Liu, 2005. "The Multi-Period Cost-Benefit Rule with Mobile Capital and Distorted Labor," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(2), pages 145-158, March.
    25. Szekeres, Szabolcs, 2024. "Resolving the Discounting Dilemma," MPRA Paper 120014, University Library of Munich, Germany.

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