Principles of cost-benefit analysis for developing countries

This book combines an introduction to welfare economics, a discussion of project appraisal principles in developing countries and a survey of the cost-benefit problems raised by externalities, risk and the environment. There are references throughout to contemporary research work in development economics, and a number of important policy issues, such as trade reform, commodity price stabilisation and the rate of exploitation of natural resources are considered within a unified cost-benefit framework. Part I introduces the basic concepts of welfare economics and includes a review of the underlying microeconomic theory. Part II deals with the traditional concerns of the project appraisal literature: trade policy, the evaluation of public sector production, marginal employment and investment decisions in the face of tax and tariff distortions. Part III examines market failures associated with information deficiencies. -after Authors