Cost-Benefit Analysis for Investment Decisions: Chapter 10 (Economic Prices for Tradable Goods and Services)
In the integrated financial and economic analysis, there is a need to choose a numeraire in which all costs and benefits are expressed. The most common practice has been to express all costs and benefits in terms of domestic currency at a domestic price level. This is the natural rule to follow for the construction of the financial cash flow statement of a project that includes all the financial receipts and all the expenditures in each period throughout the duration of the project. When this numeraire is chosen to carry out the economic appraisal of the project it is necessary, however, to adjust the values of the transactions in the financial cash flow that involve internationally tradable goods because of distortions associated with the transactions of these goods and those that affect the market for foreign exchange. This chapter identifies the key distinct characteristics between tradable and non-tradable goods and provides a method for adjusting the financial values of tradable goods so that they reflect their economic values.
|Date of creation:||Aug 2011|
|Contact details of provider:|| Postal: Kingston, Ontario, K7L 3N6|
Phone: (613) 533-2250
Fax: (613) 533-6668
Web page: http://www.econ.queensu.ca/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dinwiddy,Caroline L. & Teal,Francis J., 1996.
"Principles of Cost-Benefit Analysis for Developing Countries,"
Cambridge University Press, number 9780521479165, August.
- Dinwiddy,Caroline L. & Teal,Francis J., 1996. "Principles of Cost-Benefit Analysis for Developing Countries," Cambridge Books, Cambridge University Press, number 9780521473583, October.
- Glenn Jenkins & Pastor T. Lorenzo Jr. & Theresa Panuccio, "undated". "The Visayas Communal Irrigation Project," Development Discussion Papers 1994-07, JDI Executive Programs. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:203. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.