Book ChapterDOI
Uncertainty and the Evaluation of Public Investment Decisions
Kenneth J. Arrow,Robert C. Lind +1 more
TLDR
The implications of uncertainty for public investment decisions remain controversial as mentioned in this paper, and it is widely accepted that individuals are not indifferent to uncertainty and will not, in general, value assets with uncertain returns at their expected values.Abstract:
The implications of uncertainty for public investment decisions remain controversial. The essence of the controversy is as follows. It is widely accepted that individuals are not indifferent to uncertainty and will not, in general, value assets with uncertain returns at their expected values. Depending upon an individual’s initial asset holdings and utility function, he will value an asset at more or less than its expected value. Therefore, in private capital markets, investors do not choose investments to maximize the present value of expected returns, but to maximize the present value of returns properly adjusted for risk. The issue is whether it is appropriate to discount public investments in the same way as private investments.read more
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Code and data files for "Fiscal Policy and Default Risk in Emerging Markets"
TL;DR: In this article, all Matlab and C++ programs necessary to produce the results of the article were described and a spreadsheet with Mexican data was also provided, along with a spreadsheet containing Mexican data.
Posted Content
Climate policies as a hedge against the uncertainty on future oil supply
Julie Rozenberg,Stephane Hallegatte,Adrien Vogt-Schilb,Olivier Sassi,Céline Guivarch,Henri Waisman,Jean Charles Hourcade +6 more
TL;DR: In this article, the authors used a global energy-economy model to address the link between future oil supply and climate change and assesses in a common framework both the costs of climate policies and oil scarcity.
Book
Estimating Construction Costs and Schedules: Experience With Power Generation Projects in Developing Countries
TL;DR: In this article, the authors examined and analyzed construction costs and schedule estimates made for a group of World Bank thermal and hydroelectric power generation projects between 1965 and 1986, and concluded that the average estimating error among projects was too large to be ignored; estimated values were significantly biased below actual values, with a large accuracy variance.
Journal ArticleDOI
Does crop rotation with legumes provide an efficient means to reduce nutrient loads and GHG emissions
Sanna Lötjönen,Markku Ollikainen +1 more
TL;DR: In this paper, the authors investigate crop rotation with legumes from economic and environmental perspectives by asking how effective they are at providing profits and reducing nutrient runoff and greenhouse gas emissions compared with monoculture cultivation.
References
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Journal ArticleDOI
Prices vs. Quantities
TL;DR: In this article, the authors consider the problem of central control in a large economic organization, where the basic operating rules from the centre take the form of quotas, targets, or commands to produce a certain level of output.
Book ChapterDOI
The Role of Securities in the Optimal Allocation of Risk-bearing
TL;DR: In this article, an extension of the theory of the optimal allocation of resources under conditions of certainty is presented, and an extension to conditions of subjective uncertainty is considered, where the authors consider an optimal allocation under subjective uncertainty.
Book ChapterDOI
Readings in the economics of contract law: The economics of moral hazard: comment
TL;DR: It would be better for all insurance beneficiaries to restrain their use, but such a result is not forthcoming because the strategy of ”restrain use” is dominated by that of “use excess care.”
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