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Beyond Cost Benefit Analysis: A SAM Model for Project-Program Evaluation

Author

Listed:
  • Scandizzo Pasquale Lucio

    (University of Rome “Tor Vergata” and OpenEconomics)

  • Cufari Daniele

    (Independent Researcher)

Abstract

This paper presents a new methodology of project evaluation based on the use of a social accounting matrix (SAM). The method proposed considers both the project as an autonomous shock and as an endogenous activity, thus capturing both the demand and the supply side effects, that can be associated to investment. In assessing project impact, these two effects have to be considered complementary, even though they may be combined in different proportions and with different strength in different practical cases. The autonomous dimension is however a distinctive feature of a project as an economic concept. Its consideration has important implications to assess the structural impact of a project as an activity ranging complete isolation to total embeddedness in the economic system. The paper also shows that both in its construction and operational phases the project displays structural effects on the economic system and that these effects may be sizable and may be partly offsetting the direct impact of the project on demand and supply variables.

Suggested Citation

  • Scandizzo Pasquale Lucio & Cufari Daniele, 2023. "Beyond Cost Benefit Analysis: A SAM Model for Project-Program Evaluation," Working Papers 18, SITES.
    • Handle: RePEc:awm:wpaper:18
    Note: SITES Working Papers 18
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    References listed on IDEAS

    as
    1. Odin K. Knudsen & Pasquale L. Scandizzo, 2005. "Bringing Social Standards into Project Evaluation Under Dynamic Uncertainty," Risk Analysis, John Wiley & Sons, vol. 25(2), pages 457-466, April.
    2. Giuseppe Pennisi & Pasquale L. Scandizzo, 2006. "Economic Evaluation in the age of Uncertainty," CEIS Research Paper 86, Tor Vergata University, CEIS.
    3. Clive Bell & Shantayanan Devarajan, 1983. "Shadow Prices for Project Evaluation Under Alternative Macroeconomic Specifications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 457-477.
    4. William Easterly, 2009. "Can the West Save Africa?," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 373-447, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Project; autonomy; embeddedness; structure; social accounting matrix; social rate of return;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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