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William Augustus Ward - The economics of project analysis: a practitioners guide

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The Economics of Project Analysis: A Practitioners Guide is written for project practitioners, for instructors in agricultural project economic analysis, and for students of that subject. This guide extends and complements the discussion of project and policy economics contained in the second edition of Economic Analysis of Agricultural Projects, by J. Price Gittinger--referred to throughout this volume as Gittinger (1982). ISBN10:0-8213-1751-2 ISBN13:978-0-8213-1751-8

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title The Economics of Project Analysis A Practitioners Guide EDI - photo 1

title:The Economics of Project Analysis : A Practitioner's Guide EDI Technical Materials
author:Ward, William A.; Deren, Barry J.; D'Silva, Emmanuel H.
publisher:World Bank
isbn10 | asin:0821317512
print isbn13:9780821317518
ebook isbn13:9780585239088
language:English
subjectEconomic development projects--Developing countries--Evaluation.
publication date:1991
lcc:HC59.72.E44W37 1991eb
ddc:338.9/0068/4
subject:Economic development projects--Developing countries--Evaluation.
Page i
EDI TECHNICAL MATERIALS
The Economics of Project Analysis
A Practitioner's Guide
William A. Ward
and
Barry J. Deren
with
Emmanuel H. D'Silva
The economics of project analysis a practitioners guide - image 2
Page ii
Copyright 1991
The International Bank for Reconstruction and Development / THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing March 1991
Fifth printing June 1997
The Economic Development Institute (EDI) was established by the World Bank in 1955 to train officials concerned with development planning, policymaking, investment analysis, and project implementation in member developing countries. At present the substance of the EDI's work emphasizes macroeconomic and sectoral economic policy analysis. Through avariety of courses, seminars, and workshops, most of which are given overseas in cooperation with local institutions, the EDI seeks to sharpen analytical skills used in policy analysis and to broaden understanding of the experience of individual countries with economic development. Although the EDI's publications are designed to support its training activities, many are of interest to a much broader audience. EDI materials, including any findings, interpretations, and conclusions, are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent.
Because of the informality of the series and to make the publication available with the least possible delay, the manuscript has not been edited fully as would be the case with a more formal document, and the World Bank accepts no responsibility for errors.
The backlist of publications by the World Bank is shown in the annual Index of Publication, which is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, Banque mondiale, 66, avenue d'Ina, 75116 Paris, France.
William A. Ward is director of international programs, Division of Agriculture and Natural Resources, Clemson University, Clemson, South Carolina, U.S.A.
Barry J. Deren is an economist with the consulting firm of HJP International, Ltd., Ledbury, Herefordshire, U.K.
Emmanuel H. D'Silva is a research analyst in the Agriculture and Rural Development Division of the World Bank's Economic Development Institute.
Library of Congress Cataloging-in-Publication Data
Ward, William A. (William Augustus), 1942
The economics of project analysis: a practitioner's guide /
William A. Ward and Barry J. Deren, with Emmanuel H. D'Silva.
p. cm. (EDI technical materials)
Includes bibliographical references and index.
ISBN 0-8213-1751-2
1. Economic development projectsDeveloping countries
Evaluation. I. Deren, Barry J., 1959-. II. D'Silva, Emmanuel
H., 1950-. Ill. Title. IV. Series.
HC59.72.E44W37 1991
338.9 '0068'4dc20 90-25058
CIP
EDI Catalog No. 030/087
Page iii
CONTENTS
Preface
vii
Acknowledgments
xi
Part I. Neoclassical Economics and the Theory of the Public Sector
1
1. Defining Economic Efficiency
2
2. Market Failure and the Government Role
7
3. Government Failure and the Need for Shadow Pricing
22
4. The Willingness to Pay Numeraire
32
5. The Foreign Exchange Numeraire
38
6. The Exchange Rate in the Two Numeraires
41
7. Comparing the Two Economic Efficiency Numeraires
46
8. Project Analysis versus Policy Analysis
50
Part II. Calculating and Interpreting Conversion Factors
65
9. Cash Flows and "Real' Resource Flows
66
10. The Meaning of Conversion Factors
75
11. Categories of Conversion Factors
88
12. Conversion Factors in Application
113
13. Choosing Numeraires and Decision Criteria: Practicality and Sensitivity
129
Part III. The Strategic Planning Approach to Multi-Objective Project Appraisal
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