IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v27y1983i3p231-239.html
   My bibliography  Save this article

On Risk Deductions In Public Project Appraisal

Author

Listed:
  • Jock R. Anderson

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jock R. Anderson, 1983. "On Risk Deductions In Public Project Appraisal," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 231-239, December.
    • Handle: RePEc:bla:ajarec:v:27:y:1983:i:3:p:231-239
    DOI: j.1467-8489.1983.tb00428.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-8489.1983.tb00428.x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/j.1467-8489.1983.tb00428.x?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bird, Peter J W N, 1982. "The Arrow-Lind Theorem in a Continuum Economy: Note," American Economic Review, American Economic Association, vol. 72(3), pages 513-513, June.
    2. Foldes, L P & Rees, R, 1977. "A Note on the Arrow-Lind Theorem," American Economic Review, American Economic Association, vol. 67(2), pages 188-193, March.
    3. Mayshar, Joram, 1979. "Should Government Subsidize Risky Private Projects? Reply," American Economic Review, American Economic Association, vol. 69(3), pages 462-464, June.
    4. Fisher, Anthony C., 1973. "A paradox in the theory of public investment," Journal of Public Economics, Elsevier, vol. 2(4), pages 405-407.
    5. Anderson, Jock R., 1979. "Impacts of Climatic Variability in Australian Agriculture: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(03), pages 1-31, December.
    6. Agnar Sandmo, 1974. "Discount Rates for Public Investment Under Uncertainty," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 11, pages 192-210, Palgrave Macmillan.
    7. K.B. Hamal & Jock R. Anderson, 1982. "A Note On Decreasing Absolute Risk Aversion Among Farmers In Nepal," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 220-225, December.
    8. Grossman, Sanford J. & Shiller, Robert J., 1982. "Consumption correlatedness and risk measurement in economies with non-traded assets and heterogeneous information," Journal of Financial Economics, Elsevier, vol. 10(2), pages 195-210, July.
    9. Stewart, Marion B, 1979. "Should Government Subsidize Risky Private Projects? Comment," American Economic Review, American Economic Association, vol. 69(3), pages 459-461, June.
    10. James, Estelle, 1975. "A Note on Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 65(1), pages 200-205, March.
    11. Pauly, Mark V, 1970. "Risk and the Social Rate of Discount," American Economic Review, American Economic Association, vol. 60(1), pages 195-198, March.
    12. Breeden, Douglas T., 1979. "An intertemporal asset pricing model with stochastic consumption and investment opportunities," Journal of Financial Economics, Elsevier, vol. 7(3), pages 265-296, September.
    13. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, January.
    14. Gardner, Roy, 1979. "The Arrow-Lind Theorem in a Continuum Economy," American Economic Review, American Economic Association, vol. 69(3), pages 420-422, June.
    15. Nichols, Alan, 1972. "Uncertainty and the Evaluation of Public Investment Decisions: Comment," American Economic Review, American Economic Association, vol. 62(1), pages 168-169, March.
    16. McKean, Roland N & Moore, John H, 1972. "Uncertainty and the Evaluation of Public Investment Decisions: Comment," American Economic Review, American Economic Association, vol. 62(1), pages 165-167, March.
    17. Louis Makowski, 1983. "Competitive Stock Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(2), pages 305-330.
    18. Wellington, Donald, 1972. "Uncertainty and the Evaluation of Public Investment Decisions: Comment," American Economic Review, American Economic Association, vol. 62(1), pages 170-170, March.
    19. Mishan, E J, 1972. "Uncertainty and the Evaluation of Public Investment Decisions: Comment," American Economic Review, American Economic Association, vol. 62(1), pages 161-164, March.
    20. Mayshar, Joram, 1977. "Should Government Subsidize Risky Private Projects?," American Economic Review, American Economic Association, vol. 67(2), pages 20-28, March.
    21. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    22. Anderson, Jock R., 1974. "Simulation: Methodology and Application in Agricultural Economics," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(01), pages 1-53, March.
    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. 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.

    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. Anderson, J.R., 1989. "Forecasting, uncertainty, and public project appraisal," Policy Research Working Paper Series 154, The World Bank.
    2. Suresh M. Sundaresan, 2000. "Continuous‐Time Methods in Finance: A Review and an Assessment," Journal of Finance, American Finance Association, vol. 55(4), pages 1569-1622, August.
    3. Telmer, Chris I. & Zin, Stanley E., 2002. "Prices as factors: Approximate aggregation with incomplete markets," Journal of Economic Dynamics and Control, Elsevier, vol. 26(7-8), pages 1127-1157, July.
    4. Stijn Van Nieuwerburgh & Hanno Lustig & Bryan Kelly & Bernard Herskovic, 2014. "The Common Factor in Idiosyncratic Volatility," 2014 Meeting Papers 810, Society for Economic Dynamics.
    5. Peter J. Phillips & Michael Baczynski & John Teale, 2009. "Can self‐managed superannuation fund trustees earn the equity risk premium?," Accounting Research Journal, Emerald Group Publishing Limited, vol. 22(1), pages 27-45, July.
    6. Terry A. Marsh, 1985. "Asset Pricing Model Specification and the Term Structure Evidence," NBER Working Papers 1612, National Bureau of Economic Research, Inc.
    7. Syed M. Ahsan & Panagiotis Tsigaris, 2003. "Choice of Tax Base Revisited: Cash Flow vs. Prepayment Approaches to Consumption Taxation," CESifo Working Paper Series 983, CESifo.
    8. Carmich[ae]l, Benoit & Samson, Lucie, 2005. "Consumption growth as a risk factor? Evidence from Canadian financial markets," Journal of International Money and Finance, Elsevier, vol. 24(1), pages 83-101, February.
    9. Sharpe, William F, 1991. "Capital Asset Prices with and without Negative Holdings," Journal of Finance, American Finance Association, vol. 46(2), pages 489-509, June.
    10. Orszag, J. Michael & Yang, Hong, 1995. "Portfolio choice with Knightian uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 19(5-7), pages 873-900.
    11. repec:ers:journl:v:xxiv:y:2021:i:4:p:370-395 is not listed on IDEAS
    12. repec:dau:papers:123456789/2514 is not listed on IDEAS
    13. Ladislav Kristoufek & Paulo Ferreira, 2018. "Capital asset pricing model in Portugal: Evidence from fractal regressions," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 17(3), pages 173-183, November.
    14. Angelo Aspris & Ester Félez‐Viñas & Sean Foley & Hamish Malloch & Jiri Svec, 2024. "The market risk premium in Australia: Forward‐looking evidence from the options market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 3951-3972, December.
    15. Yu Wang & Haicheng Shu, 2019. "Evaluating the Performance of Factor Pricing Models for Different Stock Market Trends: Evidence from China," Working Papers 2019-10-10, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    16. Sin-Yu Ho & N.M. Odhiambo, 2018. "Analysing the macroeconomic drivers of stock market development in the Philippines," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1451265-145, January.
    17. Ait-Sahalia, Yacine & Lo, Andrew W., 2000. "Nonparametric risk management and implied risk aversion," Journal of Econometrics, Elsevier, vol. 94(1-2), pages 9-51.
    18. Linnenluecke, Martina K. & Chen, Xiaoyan & Ling, Xin & Smith, Tom & Zhu, Yushu, 2017. "Research in finance: A review of influential publications and a research agenda," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 188-199.
    19. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
    20. Alexis Akira Toda & Kieran James Walsh & Stijn Van Nieuwerburgh, 2020. "The Equity Premium and the One Percent," The Review of Financial Studies, Society for Financial Studies, vol. 33(8), pages 3583-3623.
    21. Gempesaw, Conrado M., II & Tambe, A.M. & Nayga, Rodolfo M., Jr. & Toensmeyer, Ulrich C., 1988. "The Single Index Market Model In Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(2), pages 1-9, October.
    22. Mayfield, E. Scott & Murphy, Robert G., 1996. "Explaining the term structure of interest rates: A panel data approach," Journal of Economics and Business, Elsevier, vol. 48(1), pages 11-21, February.

    More about this item

    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:bla:ajarec:v:27:y:1983:i:3:p:231-239. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    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.