Journal of Natural Resources Policy Research· 2013
Uncertainty and the Evaluation of Public Investment Decisions
- 817citations
- 2013year
Short summary
Public investment decisions should be evaluated by discounting expected future benefits and costs at the market rate of interest, even under uncertainty.
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Key points
- Public investment decisions should be evaluated using expected values of benefits and costs.
- The appropriate discount rate for public investments is the market rate of interest.
- Uncertainty can be managed by aggregating projects, similar to portfolio diversification.
- This method ensures efficient allocation of public resources by reflecting the true opportunity cost of capital.
AI-generated from the title and abstract; the full text is not read.
Abstract
Research Article| January 01 2014 Uncertainty and the Evaluation of Public Investment Decisions Kenneth J. Arrow; Kenneth J. Arrow Search for other works by this author on: This Site Google Robert C. Lind Robert C. Lind * Search for other works by this author on: This Site Google Journal of Natural Resources Policy Research (2014) 6 (1): 29–44. https://doi.org/10.1080/19390459.2014.867640 Cite Icon Cite Share Icon Share Facebook Twitter LinkedIn MailTo Permissions Search Site Citation Kenneth J. Arrow, Robert C. Lind; Uncertainty and the Evaluation of Public Investment Decisions. Journal of Natural Resources Policy Research 1 January 2014; 6 (1): 29–44. doi: https://doi.org/10.1080/19390459.2014.867640 Download citation file: Zotero Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All Scholarly Publishing CollectivePenn State University PressJournal of Natural Resources Policy Research Search Advanced Search Issue Section: ARTICLE You do not currently have access to this content.
The authors' abstract, as published at the source. Journal of Natural Resources Policy Research, 2013 · DOI ↗
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