Alternative Measures of the Marginal Cost of Funds
This article reconciles the use of two different marginal cost-of-funds (MCF) measures by resorting to alternative marginal benefit measures. It demonstrates how the alternative MCF measures can be properly applied to two classic problems in expenditure analysis: local cost-benefit project evaluation and the second-best public good level question. Relative strengths of the two MCF approaches in addressing the two problems are identified. Copyright 2000 by Oxford University Press.
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Volume (Year): 38 (2000)
Issue (Month): 4 (October)
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