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This research was supported by the World Bank and the Social Sciences and Humanities R~search Council of Canada. Neither institution is responsible for the views expressed in this paper. The author is indebted to V. Corbo, A. Haymer, Y. Kanemoto, K. Lee, K. Mera, Hal Varian and A. Walters for helpful comments and to Elizabeth Lambert, Shehnaz Motani', and Jeanette Leigh Paisley for excellent typing services. I would like to dedicate this book to my wife, Virginia. TABLE OF CONTENTS 1. Introduction . . . •. . ••. . •. ••. •••. . . . •. . . . . •. •. . . •. . . •. •. •. . •. . . •. ••. • 2. A Simple Producer Benefit Measure . . ••. •••. ••••. •••••••••••. ••••••. • 8 3. Willingness to P~v Functions and Marginal Cost Functions ••••••••••• 15 4. Approximate Benefit Measures 30 5. Problems with the Producer Benefit Measure ••••••••••••• ! ••••••••••• 41 5. 1. Static versus Dynamic Benefit Measures ••••••••••••••••••• 41 5. 2. The Problem of Endogenous Prices for Local Goons ••••••••• 48 5. 3. The Neglect of Consumer Benefits' ••••••••••••••••••••••••• 56 6. Alternative Approaches to Benefit Measurement •••••••••••••••••••••• 70 6. 1. The Questionnaire or Sample Survey Approach •••••••••••••• 70 6. 2. Ex Post Accounting Approaches •••••••••••••••••••••••••••• 72 6. 3. Engineering and Mathematical Programming Approaches •••••• 74 6. 4. The Applied General Equilibrium Modelling Approach ~ •••••• 75 6. 5. The Differential Approach •••••••••••••••••••••••••••••••• 77 6. 6. The Econometric Approach . . •••••••••. •. ••••••. •••••••••. •• 79 7.

Public economics --- AA / International- internationaal --- 339.312.4 --- Investeringen van de overheid. --- Infrastructure (Economics) --- Business & Economics --- Economic Theory --- Investeringen van de overheid

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AA / International- internationaal --- 339.312.4 --- 332.632.1 --- 336.026 --- Investment of public funds --- -Public investments --- -Econometrics --- -332.6 --- Economics, Mathematical --- Statistics --- Government investments --- Investments, Public --- Expenditures, Public --- Investments --- Capital budget --- Economic development projects --- Public funds, Investment of --- Finance, Public --- Legal investments --- Public investments --- Investeringen van de overheid. --- Openbare werken en investeringen. --- Uitgaven voor openbare werken. --- Finance --- Econometrics --- 332.6 --- Openbare werken en investeringen --- Uitgaven voor openbare werken --- Investeringen van de overheid

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Social costs. Social benefits --- Administration publique --- Investeringen --- Investissements --- Overheidsbeleid --- BE / Belgium - België - Belgique --- 330.32 --- 339.312.4 --- 338.22 --- Academic collection --- #ECO:03.09:industrie en onderneming investering FDI financiering --- 338.58 --- kosten-batenanalyse --- openbare sector --- overheidsinvesteringen --- belgie --- Investeringen. Investeringstheorie. Investeringskredieten. Investeringsprojecten. Investeringsquote --- Investeringen van de overheid. --- Economische organisatieleer. Economisch beleid. Economische politiek --- Sociale lasten. Sociale baten --- analyse couts benefices --- secteur public --- investissements de l'état --- belgique --- 338.22 Economische organisatieleer. Economisch beleid. Economische politiek --- 330.32 Investeringen. Investeringstheorie. Investeringskredieten. Investeringsprojecten. Investeringsquote --- Investeringen van de overheid

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Public expenditure --- Organisation for Economic Co-operation and Development --- Expenditures, Public. --- Expenditures, Public --- Public investments. --- Public investments --- Dépenses publiques --- Investissements publics --- politique des depenses des pouvoirs publics --- depenses publiques --- investissements de l'etat --- pays de l'ocde --- AA / International- internationaal --- 339.312.4 --- 336.80 --- 336.026 --- 336.39 --- -Public investments --- -Government investments --- Investments, Public --- Investments --- Capital budget --- Economic development projects --- Investment of public funds --- Appropriations and expenditures --- Government appropriations --- Government expenditures --- Government spending --- Public expenditures --- Public spending --- Spending, Government --- Finance, Public --- Public administration --- Government spending policy --- overheidsuitgavenbeleid --- overheidsuitgaven --- overheidsinvesteringen --- oeso landen --- Investeringen van de overheid. --- Theorieën over de financiële tegemoetkomingen van de Staat. --- Uitgaven voor openbare werken. --- Finance --- -overheidsuitgavenbeleid --- Dépenses publiques --- Government investments --- Uitgaven voor openbare werken --- Theorieën over de financiële tegemoetkomingen van de Staat --- Investeringen van de overheid --- OECD countries --- OECD member countries --- Organisation for Economic Co-operation and Development countries --- Appropriations and expenditures.

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339.9 --- 334.75 <100> --- Investissements publics --- Libre entreprise. --- Relations économiques internationales. --- Division internationale du travail. --- Prevision économique --- Symboles (communication graphique) Symbolen (grafische communicatie) --- Relations économiques internationales --- Capitalisme. --- Politique économique. --- Capitalisme --- Economic forecasting --- Capitalism --- International economic relations --- United States --- Economic conditions --- Liberalism --- Public investments --- Economic policy --- Libéralisme --- Politique économique --- Prévision économique --- États-Unis --- #gsdbS --- International Internationaal --- Economie Economie --- Entreprises Ondernemingen --- Emploi Tewerkstelling --- Production Productie --- economie --- AA / International- internationaal --- US / United States of America - USA - Verenigde Staten - Etats Unis --- 331.31 --- 331.061 --- 339.312.4 --- 338.313 --- 330.52 --- Economisch beleid --- Economische vooruitzichten --- Investeringen van de overheid --- Kapitalisme --- Liberaal systeem. Neo-liberalisme. Theorie van de onderhandeling --- Prevision économique - Etats-Unis --- Capitalisme - Etats-Unis --- Economic forecasting - United States --- Capitalism - United States --- United States - Economic conditions - 1981-2001