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Economic Impacts, Value Added, and Benefits in Regional Project Analysis
Author(s) -
Hamilton Joel R.,
Robison M. Henry,
Whittlesey Norman K.,
Ellis John
Publication year - 1991
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242718
Subject(s) - damages , estimation , cost–benefit analysis , value (mathematics) , net present value , natural resource economics , economics , regional science , geography , microeconomics , computer science , production (economics) , political science , law , management , machine learning
This paper addresses five issues encountered when estimating secondary benefits in regional project analysis: ( a ) the correction for opportunity cost of factors used, ( b ) the treatment of mobile factors, ( c ) the effect of economies of size, ( d ) the role of forward linkages, and ( e ) the role of spatial structure of economic regions. The first four are reasons that only a small part, if any, of regional impacts can be treated as regional net benefits. The fifth is a reason that, when secondary benefits or damages do exist, their correct estimation can depend on the spatial structure of the affected areas.