IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-074220184135.html
   My bibliography  Save this article

Methods Of Analysis Of The Effectiveness Of Public Sector Projects: Features And Constraints

Author

Listed:
  • Volodymyr Lipkan

    (Department of Criminal Law & Justice, Zaporizhzhia National University, Ukraine)

  • Lydmyla Vasutynska

    (Department of Finances, Odessa National Economic University, Ukraine)

  • Tetyana Syvak

    (Department of Parliamentarism and Political Management, National Academy for Public Administration under the President of Ukraine, Ukraine)

Abstract

The purpose of the paper is to consider the main provisions of methods of analysis of the effectiveness of public sector projects. A number of issues remain controversial in the methodology of analysing costs and benefits. So, in addition to determining the costs and benefits to be included in the analysis, one should outline the problem of assessing in the monetary equivalent of the social effects that society receives from the project implementation. Methodology. The social nature and scale of tasks that are solved in the public sector deepen the issue of identification of social effects. Discounting costs and benefits and assessing the social effect in the cost-benefit analysis involves the application of the rate of time preference. The parameters of this rate are analysed and substantiated in the study. In addition to the CBA method, an attention is paid to other methods of efficiency analysis, in particular, the method of cost-effectiveness analysis, method of weighted cost-effectiveness analysis, method of cost-utility analysis. Each method has its own specific features and limitations that determine the direction of their application. Results. It is concluded that finding solutions in the direction of studying the relationship between the social rate of intergovernmental preferences and other methods of discounting will allow us to get an idea, in which range may be the value of social discount rate. The ability to determine the range will allow taking into account the specificity of the project being implemented.

Suggested Citation

  • Volodymyr Lipkan & Lydmyla Vasutynska & Tetyana Syvak, 2018. "Methods Of Analysis Of The Effectiveness Of Public Sector Projects: Features And Constraints," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(1).
    • Handle: RePEc:bal:journl:2256-0742:2018:4:1:35
    DOI: 10.30525/2256-0742/2018-4-1-255-261
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/358/pdf
    Download Restriction: no
    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/358
    Download Restriction: no
    File URL: https://libkey.io/10.30525/2256-0742/2018-4-1-255-261?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David J. Evans & Erhun Kula, 2011. "Social Discount Rates and Welfare Weights for Public Investment Decisions under Budgetary Restrictions: The Case of Cyprus," Fiscal Studies, Institute for Fiscal Studies, vol. 32(1), pages 73-107, March.
    2. Squire, Lyn, 1989. "Project evaluation in theory and practice," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 21, pages 1093-1137, Elsevier.
    3. E Kula, 1985. "An Empirical Investigation on the Social Time-Preference Rate for the United Kingdom," Environment and Planning A, , vol. 17(2), pages 199-212, February.
    4. Karbowski, Adam, 2016. "Discussion on the Social Rate of Discount: from Sen to Behavioural Economics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 46-60.
    5. Olson, Mancur & Bailey, Martin J, 1981. "Positive Time Preference," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 1-25, February.
    6. David Pearce & Ben Groom & Cameron Hepburn & Phoebe Koundouri, 2003. "Valuing the Future," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 4(2), pages 121-141, April.
    7. Lopez, Humberto, 2008. "The social discount rate : estimates for nine Latin American countries," Policy Research Working Paper Series 4639, The World Bank.
    8. Amartya K. Sen, 1967. "Isolation, Assurance and the Social Rate of Discount," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 81(1), pages 112-124.
    9. David Evans & Haluk Sezer, 2004. "Social discount rates for six major countries," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 557-560.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krzysztof Jarosinski, 2021. "Cost-Effectiveness Analysis (CEA) of Public Investment Projects," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 769-786.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mareike Schad & Jürgen John, 2012. "Towards a social discount rate for the economic evaluation of health technologies in Germany: an exploratory analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(2), pages 127-144, April.
    2. Akbulut, Hale & Seçilmiş, Erdem, 2019. "Estimation of a social discount rate for Turkey," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 78-85.
    3. Onno J. Kuik & Barbara Bucher & Michela Catenacci & Etem Karakaya & Richard S.J. Tol, 2006. "Methodological aspects of recent climate change damage cost studies," Working Papers FNU-122, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2006.
    4. Buchholz, Wolfgang & Schumacher, Jan, 2010. "Discounting and welfare analysis over time: Choosing the [eta]," European Journal of Political Economy, Elsevier, vol. 26(3), pages 372-385, September.
    5. Arian Daneshmand & Esfandiar Jahangard & Mahnoush Abdollah-Milani, 2018. "A time preference measure of the social discount rate for Iran," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-10, December.
    6. Karbowski, Adam, 2016. "Discussion on the Social Rate of Discount: from Sen to Behavioural Economics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 46-60.
    7. Penyalver, Domingo & Turró, Mateu & Zavala-Rojas, Diana, 2018. "Intergenerational perception of the utility of major transport projects," Research in Transportation Economics, Elsevier, vol. 70(C), pages 97-111.
    8. Jinchi Dong & Richard S. J. Tol & Fangzhi Wang, 2024. "Towards a representative social cost of carbon," Papers 2404.04989, arXiv.org.
    9. Massimo Florio & Emanuela Sirtori, 2013. "The social cost of capital: recent estimates for the EU countries," Working Papers 201303, CSIL Centre for Industrial Studies.
    10. World Bank, 2005. "Towards a More Effective Operational Response : Arsenic Contamination of Groundwater in South and East Asian Countries, Volume 2, Technical Report," World Bank Publications - Reports 8524, The World Bank Group.
    11. Hala Abu-Kalla & Ruslana Rachel Palatnik & Ofira Ayalon & Mordechai Shechter, 2020. "Hoard or Exploit? Intergenerational Allocation of Exhaustible Natural Resources," Energies, MDPI, vol. 13(24), pages 1-20, December.
    12. White, Thomas A. & Runge, C. Ford, 1992. "Common Property And Collective Action: Cooperative Watershed Management In Haiti," Working Papers 14377, University of Minnesota, Center for International Food and Agricultural Policy.
    13. Tol, Richard S.J. & Yohe, Gary W., 2009. "The Stern Review: A deconstruction," Energy Policy, Elsevier, vol. 37(3), pages 1032-1040, March.
    14. Buffie, Edward F. & Atolia, Manoj, 2012. "Trade, growth, and poverty in Zambia: Insights from a dynamic GE model," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 211-229.
    15. Honohan, Patrick, 2001. "Recapitalizing banking systems : implications for incentives and fiscal and monetary policy," Policy Research Working Paper Series 2540, The World Bank.
    16. Vipul Bhatt & Masao Ogaki & Yuichi Yaguchi, 2017. "Introducing Virtue Ethics into Normative Economics for Models with Endogenous Preferences," RCER Working Papers 600, University of Rochester - Center for Economic Research (RCER).
    17. James E. Anderson & Will Martin, 2011. "Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 289-309, April.
    18. J Pentecost Eric & Ramlogan Carlyn, 2000. "The Savings Ratio and Financial Repression in Trinidad and Tobago," International Economic Journal, Taylor & Francis Journals, vol. 14(2), pages 67-84.
    19. Marion Davin & Karine Gente & Carine Nourry, 2013. "Should a Country Invest more in Human or Physical Capital? A Two-Sector Endogenous Growth Approach," AMSE Working Papers 1330, Aix-Marseille School of Economics, France, revised May 2013.
    20. Ellingsen, Tore & Johannesson, Magnus & Mollerstrom, Johanna & Munkhammar, Sara, 2012. "Social framing effects: Preferences or beliefs?," Games and Economic Behavior, Elsevier, vol. 76(1), pages 117-130.

    More about this item

    Keywords

    cost-benefit analysis; social rate of discount; cost-effectiveness analysis; weighted cost-effectiveness analysis; cost-utility analysis;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bal:journl:2256-0742:2018:4:1:35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Jankovska (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.