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On Risk Deductions In Public Project Appraisal

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  • Anderson, Jock R.

Abstract

Project appraisal under uncertainty should, in general, be worked in terms of carefully computed expected or mean values of uncertain elements. The major exceptions are when: (a) project returns are large relative to national income; or (b) project returns are highly correlated with other national income. Approximate procedures have been developed for computing risk adjustments in each of these special cases singly, but here, a more comprehensive procedure is described that encompasses both cases separately and jointly.

Suggested Citation

  • Anderson, Jock R., 1983. "On Risk Deductions In Public Project Appraisal," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 1-9, December.
    • Handle: RePEc:ags:ajaeau:22747
    DOI: 10.22004/ag.econ.22747
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    References listed on IDEAS

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    1. Mayshar, Joram, 1977. "Should Government Subsidize Risky Private Projects?," American Economic Review, American Economic Association, vol. 67(2), pages 20-28, March.
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    1. Anderson, Jock R., 1990. "Thoughts On Risk Accounting In Public Project Appraisal," 1990 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk Meeting, January 28-31, 1990, Sanibel Island, Florida 271534, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.

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