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Structural adjustment, real exchange rates and project appraisal
Author(s) -
Weiss J.
Publication year - 1994
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3380060103
Subject(s) - shadow price , project appraisal , relative price , exchange rate , economics , shadow (psychology) , economic appraisal , estimation , econometrics , macroeconomics , public economics , microeconomics , mathematics , management , psychology , mathematical optimization , psychotherapist
The conventional procedure in economic project appraisal is to assume constant relative prices. It is well known, however, that a central objective of structural adjustment programmes is to alter key relative prices, and in particular the real exchange rate. The paper explores some of the implications of this relative price shift for the estimation of shadow prices.