Shadow prices for project appraisal : theory and practice / Elio H. Londero with a contribution from Héctor Cervini.

Format:

Book

Author/Creator:

Londero, Elio.

Contributor:

Cervini, Héctor.

Language:

English

Subjects (All):

Shadow prices.

Economic development projects--Evaluation.

Economic development projects.

Physical Description:

xii, 273 pages : illustrations ; 25 cm

Place of Publication:

Cheltenham, UK ; Northampton, MA : E. Elgar, [2003]

Contents:

1.2 Foundations of Cost-Benefit Analysis 3

1.3 Shadow Prices and the Discount Rate 11

1.4 Different Methods 15

Appendix 1.1 Interpersonal and Intertemporal Weights 23

2. Foreign Exchange 28

2.1 The Classification of Goods 28

2.2 Pricing Marginally Traded Goods 30

2.3 The Shadow Price Ratio of Foreign Exchange 31

2.4 More Realistic Assumptions 45

2.5 Domestic and Foreign Exchange Numeraires 54

Appendix 2.1 A Simple General Equilibrium Derivation 58

3. Labor 62

3.1 The Shadow Price of Labor 62

3.2 Dual Labor Markets 71

3.3 Other Special Cases 84

3.4 The UNIDO and the Little-Mirrlees Shadow Prices for Labor 90

4. Land 92

4.2 No External Effects 92

4.3 Usable Land as a Partially Produced Good 96

4.4 Other Issues 97

4.5 External Effects 99

5. Fiscal Resources 102

5.1 The Problem 102

5.2 Implications of Simple Models 103

5.3 A Simple Partial Equilibrium Example 105

5.4 Fiscal Policy and Net Fiscal Effects 110

5.5 Empirical Studies 113

Appendix 5.1 A Simple General Equilibrium Derivation 114

6. Produced Goods 116

6.1 The Rationale for Using Input-Output Techniques 116

6.2 A Numerical Example 121

6.3 Cost Structures for Marginally Produced Goods 123

6.4 Preparing the Input-Output Table 126

6.5 Nonproduced Inputs in the Input-Output Table 135

6.6 Using Existing Input-Output Tables 139

6.7 Estimating sprs without an Input-Output Table 143

6.8 Some Empirical Results 144

Appendix 6.1 Inputs in Fixed Supply and Partially Produced Goods 149

7. Using and Updating Shadow Prices 152

7.1 Pricing Project Outputs 152

7.2 Pricing Project Inputs 157

7.3 Using Shadow Prices to Calculate More 159

7.4 Updating the Estimates 164

Appendix 7.1 Derivation of Expressions (7.16) and (7.17) 175

8. Shadow Prices for Colombia 177

8.2 Methodological Approach 180

8.3 The Use of Marginal Cost Estimates 187

8.4 Investment and Consumption Conversion Factors 192

8.5 Updating the Matrix 195

8.6 Foreign Exchange 198

8.7 Labor 209

8.8 Results 225

Appendix 8.1 The Preparation of the Input-Output Table 242.

Notes:

Includes bibliographical references (pages 256-265) and indexes.

ISBN:

1843763575

OCLC:

52047202