Appraising Public Investment Decisions: The Dynamic Benefit-to-Cost Ratio

Thursday 28 February 2013, 1.15PM to 2.15pm

Speaker(s): Dr. Jacco Thijssen, University of York

Abstract: Many public investments and policy measures are characterized by upfront costs over an uncertain period of time, followed by uncertain revenues in later years. Therefore, the standard approach to investment appraisal, the static benefit-to-cost ratio (BCR), is an inappropriate tool. We introduce a dynamic version of the BCR and illustrate its applicability in two example: (i) temporary unemployment measures in response to economic downturns and (ii) investment in infrastructure (e.g. high-speed rail).

Location: Economics Staff Room (EC/202)

Admission: Economics Thursday Workshop. For Staff and Postgraduate students